Market Drivers – US Session – 26/06/2023

Gold prices peaked at $1,937 and then pulled back toward $1,920. Silver rose 1.50% and approached $23.00. Cryptocurrencies fell modestly, with Bitcoin holding above $30,000.

No key data is expected during the Asian session. Later, on Tuesday, the US will report Durable Goods Orders and Canada will release inflation data. The ECB Forum will gather attention with many central bankers due to speak on Tuesday ahead of a panel on Wednesday that will include Powell, Bailey, and Lagarde. Geopolitics is also on the agenda.

Economic Data

Data released on Monday showed that the US Dallas Fed Manufacturing Index decreased in June from -29.1 to -23.2. On Tuesday, the US May Durable Goods Orders report is due, as well as housing data with the S&P/Case-Shiller and the FHFA Price Index and New Home Sales. The key number this week from the US will be on Friday with the Core Personal Consumption Expenditures.

Key Developments

Wall Street finished lower on Monday with the Nasdaq falling 1.16%, and Treasury yields declined. The US Dollar Index dropped modestly, closing around 102.75, on a quiet day for currencies. Market participants await new data and speeches from central bankers from the European Central Bank (ECB) forum.

EUR/USD moved sideways near 1.0900, away from Friday’s low. The pair remains steady, showing no clear signs. The German Ifo survey declined more than expected. On Tuesday, the focus will be on ECB speakers at the Sintra conference. On Wednesday, Lagarde will be part of a policy panel with Bailey, Powell, and Ueda.

The Pound lagged on Monday, still affected by last week’s developments. GBP/USD held above recent lows and finished slightly above 1.2700. Bank of England’s Tenreyro will speak on Tuesday.

USD/JPY pulled back modestly from multi-month highs amid cautious markets and lower US yields but held above 143.00.

The Canadian dollar continued to outperform. USD/CAD reached the lowest intraday level since mid-September at 1.3136 and then bounced toward 1.3150, trimming losses. Crucial data will be released on Tuesday with the May Consumer Price Index, which is expected to slow down from an annual rate of 4.4% to 3.4%.

AUD/USD moved sideways around 0.6675 on Monday, consolidating last week’s losses. The attention regarding data is set on Wednesday with Australia’s Consumer Price Index for May ahead of next week’s Reserve Bank of Australia (RBA) meeting.

NZD/USD rebounded from the 20-day Simple Moving Average (SMA) and climbed above 0.6150. New Zealand Prime Minister Hipkins is on a state visit to China.

The Turkish Lira continued to decline and hit fresh record lows, with USD/TRY reaching levels above 26.00.

Also Read:
While reacting to hawkishness, is gold still sensitive to geopolitical events?

Wall Street slides on uncertainty around rate hike outlook

Crude oil, NatGas prices surge after turmoil in Russia over weekend

EUR/USD awaits guidance from ECB Forum

USD/CAD expected to head above 1.3

Lower oil prices, ignoring the political turmoil in Russia

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