During the Asian session on Tuesday, New Zealand will report April visitor arrivals. In Australia, the Westpac Consumer Confidence Index for June and the NAB Business Survey for May will be released. The focus of the day will be the US Consumer Price Index, which will provide key input ahead of Wednesday’s FOMC decision.
Here’s what you need to know on Tuesday, June 13:
Stocks opened the week on a positive note ahead of key data and events. Markets appear to be cheering at the prospect of the Federal Reserve (Fed) ending its rate hike cycle. The upcoming economic data will be crucial. The Dow Jones gained 0.56% and the Nasdaq rose 1.53%. US Treasury yields pulled back during the American session and ended the day modestly lower.
The Federal Reserve begins its two-day meeting on Tuesday. On Wednesday, the central bank is expected to hit the pause button; however, some analysts warn that another 25 basis points rise seems possible. The key report on Tuesday will be the US Consumer Price Index (CPI), which is expected to have risen 0.2% in May and 4.1% from a year ago, up from 4.9%; Core CPI will advance 0.4% for the month and 5.3% from a year ago, up from 5.5% the prior month. These figures will be crucial for expectations about the Fed’s monetary policy.
The DXY rose modestly on Monday, ending above 103.50. It is moving without a clear direction, still above the 103.30 support.
The pair EUR/USD it made new weekly highs but then pulled back to around 1.0750. The pair is moving sideways, pending new data and ahead of the European Central Bank (ECB) meeting on Thursday. On Tuesday, Germany and Spain will report the final reading of the consumer price index for May, which should not be surprising. The June ZEW surveys for Germany and the Eurozone will also be released.
GBP/USD ended a three-day positive streak with a sharp decline. It managed to recover above 1.2500 in US time. The Pound lagged despite hawkish comments from Bank of England (BoE) officials. The EUR/GBP pair had the best day in weeks and bounced from monthly lows to 0.8600. UK employment data will be released on Tuesday. The Unemployment Rate is expected to increase from 3.9% to 4% in the three months ending in May. Bailey of the BOE testifies before the House of Lords.
The USD/JPY pair continued to move sideways around 139.50, as it has been since the beginning of the month. With the Fed and Bank of Japan meetings ahead, the current range between 138.50 and 140.00 will be challenged.
The AUD/USD pair rose for the third day in a row and posted the highest daily close in a month at 0.6750, thanks to the strong performance of the Australian dollar. The Westpac-Melbourne Institute’s Consumer Sentiment (June) and the National Australia Bank’s monthly Business Survey (May) will be released on Tuesday.
The NZD/USD pair is facing resistance at the 200-day SMA at 0.6120. The pair is moving with a bullish bias, but there are some signs of exhaustion. The next move will depend on the USD. New Zealand migration data will be released on Tuesday.
USD/CAD bounced from the important support zone above 1.3300 to 1.3385/90. The bias is to the downside, but the AUD needs to break below 1.3300 to clear the way for further gains. The 4% drop in crude oil prices weighed on the Canadian dollar, which lagged on Monday.
Gold found support at $1,950 on Monday and pared losses during the Asian session, rallying as high as $1,960. Silver lost 0.95% and ended around $24. Cryptocurrencies were mixed, with Bitcoin losing 1%, falling below $36,000.
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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.
