This is what you need to know to trade today Friday June 24:
Major currency pairs trade in relatively tight ranges throughout the week as investors try to figure out how central banks will continue to fight inflation in the face of heightened risks of a recession. German IFO business sentiment data will be released on the European economic calendar on Friday. In the second half of the day, the University of Michigan will release the final revision of June’s consumer sentiment index and the US Census Bureau will release May new home sales data. Investors will be watching for comments from central bank spokespersons ahead of the weekend.
The DXY dollar index trades sideways above 104.00 and the 10-year US Treasury yield remains above 3% after falling the previous two days. US stock index futures are up 0.4%-0.7%, pointing to a slightly upbeat market sentiment.
During his appearance before the House Financial Services Committee, the chairman of the FOMC, Jerome Powell reiterated that they have an “unconditional commitment” to fight inflation“We’re trying to moderate demand so inflation can come down,” Powell added, but also noted that he still expects growth this year to be quite strong. For her part, Federal Reserve Governor Michelle Bowman said on Thursday that another rate hike of 75 basis points (bps) in July and at least 50 bps of hikes in upcoming meetings would be appropriate.
The EUR/USD erased Wednesday’s gains on Thursday, but had no difficulty holding above 1.0500. “If monetary policy lags behind, even stronger interest rate hikes may be needed to control inflationJoachim Nagel, a member of the Governing Council of the European Central Bank (ECB), said on Wednesday.
The GBP/USD closed for the second day in a row virtually unchanged on Thursday and continued its sideways trend below 1.2300 early on Friday. The Conservative Party, in power in the United Kingdom, lost the partial elections, with the loss of two Tory seats after votes held in Wakefield, Tiverton and Honiton. Meanwhile, the UK Office for National Statistics revealed that retail sales decreased 0.5% in monthly terms in May, against the market expectation of a contraction of 0.7%.
The USD/JPY continued to push lower after closing below 135.00 on Thursday. Data from Japan showed that the National consumer price index remained unchanged at 2.5% YoY in May, falling short of analysts’ estimate of 2.9%. Commenting on the data, “we should pay sufficient attention to the possible impact of inflation on consumer sentiment and corporate activities,” Japanese Chief Deputy Cabinet Secretary Seiji Kihara said.
The Prayed closed Thursday in negative territory and appears to have entered a consolidation phase above $1,820 in European morning.
The Bitcoin managed to post recovery gains on Thursday but failed to muster further upside momentum. BTC/USD is now down more than 1% on the day to $20,780. The ethereum It trades in a tight range near $1,100 early Friday.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
