Following the Fed’s widely anticipated decision to keep interest rates unchanged, the US Dollar regained its upward momentum. However, a hawkish stance from Chief Powell during his press conference and somewhat optimistic remarks from President Trump about a potential deal with Iran ultimately provided additional support for the Greenback.
Here’s what to watch on Thursday, June 19:
The US Dollar Index (DXY) traded with modest gains amid declining US yields, with its upside still capped by the 99.00 zone. There will be no activity in the US markets on Thursday due to the Juneteenth holiday.
EUR/USD eased to multi-day lows near 1.1460 following the late rebound in the Greenback. The EMU’s Construction Output wil be the sole release on the old continent alongside speeches by the ECB’s Lagarde, Buch and De Guindos.
GBP/USD added to Tuesday’s decline and slipped back to the 1.3400 zone in response to the Fed-led bounce in the US Dollar. The BoE is broadly seen leaving its policy rate at 4.25%.
USD/JPY reversed three daily advances in a row and came under renewed selling pressure, briefly retesting the mid-144.00s. The usual weekl Foreign Bond Investment figures are expected on the Japanese docket.
AUD/USD kept its erratic performance well in place, reclaiming once again the area beyond the key 0.6500 barrier. The publication of the crucial labour market report will take centre stage in Oz.
WTI prices partially trimmed Tuesday’s firm advance, slipping back to the vicinity of the $71.00 mark per barrel despite escalating concerns in the Middle East, fears of disruption and a mixed EIA’s weekly report.
Gold prices receded to the vicinity of the $3,360 zone per troy ounce on the back of the US Dollar’s rebound, the Fed’s decision to keep rates unchanged, and hopes of a potential US-Iran talks. Silver prices hit new tops north of the $37.00 mark per ounce, just to reverse course and end the day with marked losses around $36.60.
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