What you need to know on Tuesday, June 22:
The dollar corrected the extreme overbought conditions, but it is still the strongest currency in the foreign exchange market. It lost most of the ground during US business hours amid strong Wall Street gains.
The EUR / USD pair corrected to 1.1920, staying close to the end of the end. ECB President Christine Lagarde said the outlook for the euro zone economy is encouraging as the pandemic situation improves, but warned of the need to remain vigilant, adding that the adjustment would be premature.
GBP / USD rose due to better market sentiment, ignoring comments from Prime Minister Boris Johnson. Johnson said cases of the delta variant of the coronavirus continue to rise, adding that they should be cautious in easing restrictions. He added that the data looks good before the July 19 deadline, although he noted that travel will be “difficult.”
In the US, St. Louis Fed Chairman James Bullard noted that they would no longer need the emergency policies as the pandemic came to an end, but added that low interest rates and declining inflation rate will not end soon. Additionally, Dallas Fed Chairman Robert Kaplan is in favor of “taking my foot off the gas sooner rather than later.”
AUD / USD is trading around 0.7540, helped by the better performance of stocks. USD / CAD lost more than 100 pips on the day, helped by the corrective fall in the dollar and the rise in crude prices. The WTI closed the day at $ 73.00 a barrel.
Gold prices posted a modest daily advance. Gold closed at $ 1,784 a troy ounce.
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