Forex Today – Asian Session: FX space remains on standby

The US dollar regained some of the ground lost after Monday’s negative session along with a decent bounce in US yields, while expectations of a Fed rate cut in September and December remained among investors.

Here’s what you need to know on Wednesday, June 26:

The US Dollar Index (DXY) shook off Monday’s pullback and rose to the 105.80 zone, accompanied by a modest rebound in US yields, while disappointing consumer confidence readings boosted bets on a rate cut. On June 26, the MBA will report typical weekly mortgage applications ahead of new home sales.

EUR/USD resumed its bearish momentum and revisited the region below 1.0700 against the backdrop of a decent move higher in the Dollar. Consumer confidence in Germany measured by GfK will be released on June 26 along with a speech by P. Lane of the ECB.

GBP/USD alternated gains with losses after a failed attempt to overcome the 1.2700 barrier. The CBI Distributive Trades will only be published on June 26 across the Channel.

USD/JPY traded just below the 160.00 level amid lingering concerns about the likelihood of foreign exchange market intervention. The Japanese agenda will be empty on June 26.

AUD/USD shed Monday’s bullish move and returned to the 0.6630–0.6640 range amid US Dollar gains. In Australia, the Westpac Leading Index will be released on June 26, ahead of the RBA’s monthly CPI indicator and the RBA’s L. Kent speech.

WTI prices corrected slightly lower after hitting new monthly highs just below $82.00 per barrel ahead of key US inventory data.

The stronger dollar and higher US yields played against the continuation of Monday’s advance in gold prices, which hovered around the $2,320 area. Silver added to the ongoing weakness and fell to multi-day lows, breaking below the key $29.00 per ounce level.