This is what you need to know to trade today Wednesday June 29:
The dollar benefited from safe-haven money flows on Tuesday with the DXY dollar index gaining more than 0.5%. Markets remain cautious in the middle of the week and the dollar remains firm against its main rivals. Business sentiment data from the euro zone, German inflation figures and the final revision of the US first quarter gross domestic product GDP will be seen for a further boost. And more importantly, the chairman of the FOMC, Jerome Powellthe president of the ECB , Christine Lagardeand the Governor of the BoE, Andrew Baileywill speak at the annual ECB Forum on Central Banking.
US data showed on Tuesday that consumer sentiment continued to weaken in June, with the Conference Board consumer confidence index falling to 98.7 points from 103.2 in May. In addition, the survey showed that consumers’ one-year inflation rate expectations rose to 8% from May’s revised figure of 7.5%. In response, the S&P500 lost nearly 2%.
The pair EUR/USD has come under further downward pressure and has fallen below 1.0500 in the early hours of the European session, after closing in negative territory on Tuesday. The head of monetary policy at the European Central Bank (ECB), Gediminas Simkus, said on Wednesday that the central bank was very likely to raise the rate by 50 basis points in September, but this commentary has not helped the common currency find demand. Meanwhile, Reuters reported that the bank was weighing whether to announce the size and duration of the bond purchase plan to be used against fragmentation at its next policy meeting.
The GBP/USD trades below 1.2200 in European morning. The political jitters related to Brexit weighs on the British pound after members of Parliament approved the bill that allows ministers to remove parts of the Northern Ireland Protocol.
The AUD/USD rose modestly during Asian trading after Australian data will show retail sales up 0.9% in monthly terms in May, beating market expectations of 0.4% by a wide margin. However, with the dollar retaining its strength, the pair fell into negative territory below 0.6900.
The USD/JPY it consolidates its gains above 136.00 after having closed the previous three sessions higher. “Unlike other economies, the Japanese economy has not been greatly affected by the global inflationary trendso monetary policy will remain accommodative,” Bank of Japan (BoJ) Governor Haruhiko Kuroda said earlier in the day.
The Prayed kept going down and hit its lowest level in almost two weeks, at $1,816. However, with the 10-year US Treasury yield shedding nearly 1% early on Wednesday, XAU/USD’s losses remain limited for now.
The Bitcoin it remains down and is approaching $20,000. The ethereum falls for the fourth day in a row and is now down more than 1% on the day at $1,130.
Source: Fx Street
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