What you need to know on Friday, June 18:
The US currency extended its gains against most of its main rivals, except for the JPY, which strengthened thanks to falling government bond yields. However, market participants continued to value the latest aggressive stance from the US Federal Reserve, which hinted at two rate hikes in 2023 while improving growth and the inflation forecast.
EUR / USD traded as low as 1.1891, while GBP / USD fell to 1.3895, rebounding modestly from those lows. The bitter tone of equities exacerbated the weakness of the high yield currencies.
Commodity-linked currencies advanced earlier in the day amid strong New Zealand GDP and upbeat Australian employment figures, but the dollar eclipsed everything and resumed its advance, pushing its rivals to multi-month lows. The USD / CAD pair is trading around 1.2350, its highest level since late April. AUD / USD flirted with the year’s low at 0.7531, with a break below the level that opened the door for a steeper decline.
Gold slumped to $ 1,767.19 a troy ounce, while crude oil prices also fell, but managed to rebound before the close. The WTI closed at $ 71.00 a barrel.
Yields on US Treasuries fell from post-Fed highs. The 10-year Treasury yield is currently around 1.51% after hitting 1.59%.
Wall Street started the day lower, although the indices managed to trim some losses before the close. The DJIA and the S & P500 closed in bearish numbers, but the Nasdaq added more than 100 points.