What you need to know on Friday, June 25:
The dollar lost some ground during the first half of the day, to regain most of it during the US session. Generally speaking, trading was boring. The EUR / USD pair remained within familiar levels above 1.1900, while commodity currencies consolidated against their US rival.
The US data was mostly encouraging, although most of the numbers disappointed market expectations. Initial jobless claims for the week ending June 19 posted 411,000, while the previous weekly figure was revised to 418,000. Durable goods orders increased 2.3% in May, while first quarter gross domestic product was confirmed at 6.4%. The numbers indicate that the US economic recovery may have reached a plateau. This is not bad news, but it can prevent the dollar from strengthening further.
The pound was the worst performer, falling after the BOE’s monetary policy announcement. As widely anticipated, the authorities put rates and easing programs on hold. However, the accompanying statement offered a restrained tone. “The Committee does not intend to tighten monetary policy at least until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target on a sustainable basis.” Market participants were looking for an aggressive tilt, they included some advice on when the downsizing can start. GBP / USD is trading around 1.3910.
Gold was under selling pressure during the US afternoon as Wall Street flirted with all-time highs. The rally in stocks was backed by the announcement by US President Joe Biden, who said they reached a bipartisan agreement on the infrastructure spending plan. The shiny metal was around $ 1,775.00 a troy ounce.
Crude oil prices rebounded from intraday lows, posting modest daily losses. The WTI settled at $ 73.10 per barrel.