Forex Today – Asian Session: Markets focus on BoJ and US data

The US dollar managed to regain its balance and reverse the post-CPI pullback on Thursday, along with investors’ assessment of a possible interest rate cut by the Fed sometime before the end of the year and the fall of the US yields across the curve. The BoJ is expected to keep rates unchanged.

Here’s what you need to know on Friday, June 14:

The Dollar Index (DXY) regained its bullish trend and reclaimed the area beyond the 105.00 barrier, even as US yields continue to trend lower. On June 14, the preliminary Michigan Consumer Sentiment index is expected, followed by the Fed’s Goolsbee (Chicago) speech.

EUR/USD sharply reversed Wednesday’s bullish attempt and traded within striking distance of monthly lows near 1.0720. The results of the Trade Balance in the Eurozone are expected on June 14, along with the ECB’s Lagarde speech.

GBP/USD turned around after three consecutive sessions of gains in response to the dollar’s sharp rebound. The UK calendar is empty on June 14.

USD/JPY maintained cautious trading near the 157.00 region, rising modestly on the day ahead of the important BoJ meeting. In fact, the BoJ interest rate decision takes center stage on June 14, followed by final industrial production and the tertiary industry index.

AUD/USD came under pressure following gains in the US Dollar, partially undoing Wednesday’s strong advance. The release of consumer inflation expectations will be released on June 14, followed by the Consumer Confidence Index tracked by Westpac.

WTI prices traded within a tight range around $78.00 per barrel as traders digested the recent US crude oil inventories report and inflation data.

Gold corrected sharply lower after three consecutive sessions of gains due to the strength of the Dollar and expectations of only one interest rate cut by the Fed this year. Silver sold to four-week lows, breaking below $29.00 per ounce amid a general bearish tone in the commodities complex.