What you need to know on Wednesday, June 16:
The dollar gained ground ahead of the US opening, but closed the day on a mixed basis. EUR and CHF are unchanged against their US rival, as well as JPY, while commodity currencies and the pound are trading firmly lower.
US retail sales disappointed expectations, while the PPI advanced more than expected, pointing to further inflationary pressures. The focus is now on the US Federal Reserve, as the central bank will announce its decision on monetary policy on Wednesday and provide new economic projections.
Nervousness over Brexit and the delayed reopening of the UK continued to weigh on the pound. According to the latest data, Irish imports from Britain fell more than 20% in April, deepening the post-Brexit trend. On Monday, Prime Minister Boris Johnson confirmed that the current restrictions would continue until July 19, adding that he believes there will be no further delays, but did not rule out such a negative scenario. GBP / USD fell to a new 2-month low.
Wall Street closed in the red after European indices posted modest intraday gains. US Treasury yields consolidate around the close of Monday, with the 10-year bond yield stable at around 1.50%.
Gold is under slight pressure, trading around $ 1,857 a troy ounce, the 38.2% retracement of its last bullish move. Crude prices resumed their advance and the WTI was above $ 72.00 a barrel.
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