The US dollar (USD) remained firm on Tuesday in the middle of an escalation of the conflict between Israel and Iran, which drove the dollar due to its appeal as a safe refuge. The fears that the United States (USA) could be involved in joining Israel’s attack against Iran loom, relegating economic data and the monetary policy decision of the Federal Reserve to the background.
This is what you have to observe on Wednesday, June 18:
Geopolitics The headlines is dominating. The president of the United States, Donald Trump, refrained from sending senior officials to meet Iran to reach an agreement, according to US officials who spoke with CNN. Meanwhile, the revelation of axios that Trump is considering attacking Iran could drive the dollar, along with the secure refuge and gold currencies.
The US dollar index (DXY) rose above 98.86, 0.74% at four -day maximums, despite the fall in the yields of the US Treasury bonds. This movement occurred despite the publication of US retail sales data from US of the United States. On Wednesday, initial unemployment subsidy last week, construction beginnings, construction permits and the policy decision of the Federal Open Market Committee (FOMC) will establish the tone for the dollar.
Consequently, most G8 currencies Forex They were lagging compared to the US dollar. EUR/USD It fell below 1,1500 despite the fact that German ZEW figures were positive, and ECB officials took a page of the Fed plan, adopting a waiting mode and becoming dependent on the data. The operators approach will be in the HICP figures for the Eurozone, the current account of the Eurozone and the ECB officials, led by Panetta, Nagel, Lane and Vice President Luis de Guindos.
The GBP/USD torque was pressed for Risk aversionalthough investors seemed convinced that the Bank of England (BOE) will maintain interest rates without changes in Thursday’s monetary policy meeting. Before the meeting, BOE officials They will receive an update on the United Kingdom inflation figures on Wednesday.
USD/JPY rose above 145.00 since the Bank of Japan (BOJ) kept the rates unchanged at 0.50%, although it warned that “the downward risks are greater for the economy and prices,” according to the governor of the Boj, Ueda. The agenda will include the UEDA press conference, the Reuters Tankan Index, machinery orders and the commercial balance.
The antipodeans invested their course on Tuesday, before the FOMC meeting, since the feeling became negative. Aud/USD fell 0.75%, closing at 0.6470, while NZD/USD collapsed 0.77% to 0.6010. The agenda in New Zealand will include the current account, while Australia programming is absent.
In the space of raw materials, the WTI rose more than 4.82% after bouncing from daily minimums of $ 69.56, reaching $ 73,33 per barrel, as the crisis in the Middle East deteriorates and increases the probability that the US between the conflict.
The gold finished flat about $ 3,387 after traveling from a minimum of $ 3,366 to a maximum of $ 3,403. The operators seem reluctant to boost the precious metal, despite the fact that a survey of central banks suggests that they would continue to increase their gold reserves. This, together with the FOMC monetary policy decision, will be crucial to provide direction to the precious metal.
US dollar price this week
The lower table shows the percentage of the US dollar change (USD) compared to the main currencies this week. US dollar was the strongest currency against pound sterling.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.54% | 1.05% | 0.49% | 0.76% | 0.17% | 0.11% | 0.63% | |
| EUR | -0.54% | 0.39% | -0.07% | 0.22% | -0.24% | -0.43% | 0.09% | |
| GBP | -1.05% | -0.39% | -0.43% | -0.17% | -0.62% | -0.81% | -0.30% | |
| JPY | -0.49% | 0.07% | 0.43% | 0.26% | -0.62% | -0.71% | -0.28% | |
| CAD | -0.76% | -0.22% | 0.17% | -0.26% | -0.50% | -0.64% | -0.13% | |
| Aud | -0.17% | 0.24% | 0.62% | 0.62% | 0.50% | -0.18% | 0.33% | |
| NZD | -0.11% | 0.43% | 0.81% | 0.71% | 0.64% | 0.18% | 0.52% | |
| CHF | -0.63% | -0.09% | 0.30% | 0.28% | 0.13% | -0.33% | -0.52% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
