Forex Today: US PCE readings gather all the attention
The Greenback retreated further and slipped back to levels last seen in March 2022 as fears over the Fed’s independence weighed heavily on investors’ sentiment while traders geared up for the release of extra inflation data on Friday.
Here's what to watch on Friday, June 27:
The US Dollar Index (DXY) retreated for the fourth day in a row and challenged the 97.00 support for the first time since March 2022 on the back of mixed yields and traders’ concerns over the Fed’s independence. Inflation gauged by the PCE will be in the spotlight, seconded by the final U-Mich print, Personal Income and Personal Spending. In addition, the Fed’s Kashkari, Williams, Cook, and Hammack are all due to speak.
EUR/USD maintained its bullish stance and climbed to new multi-year peaks north of the 1.1700 barrier. The final EMU’s Consumer Confidence and the ECB’s Consumer Inflation Expectations survey will be released.
GBP/USD followed its risk-linked peers and rose past 1.3700 the figure for the first time since October 2021. The annualised Car Production data will be the only release across the Channel.
USD/JPY resumed its downtrend and retested the 143.70 zone, or multi-day troughs, an area also coincident with the interim 55-day SMA. The Tokyo Inflation Rate, Retail Sales and the Unemployment Rate will wrap up the weekly docket in “The Land of the Rising Sun”.
AUD/USD’s march north remained unabated on Thursday, rising to fresh seven-month highs near 0.6560. Next on the Australian calendar will be the Housing Credit prints and Private Sector Credit figures on June 30.
WTI left behind part of the weekly sell-off and regained some traction, revisiting the $66.00 mark per barrel on Thursday.
The generalised bullish tone in the risk complex weighed on Gold and kept prices depressed around the $3,320 zone per troy ounce. On the contrary, Silver prices added to Wednesday’s recovery and approached the $37.00 mark per ounce, or five-day highs.