Market Drivers; US Session, June 12

Mohamed Abdelhamid 13 June, 2024 5:39 am Commodities, Forex Market, Market Update

Recent economic news and headlines have been dominated by data and concerns related to US inflation. The negative surprise of the US CPI in May caused the US dollar to rapidly revert its recent positive trend, although the hawkish stance taken by the Federal Reserve helped the USD Index (DXY) regain some composure.

Due to falling US yields, a decrease in the CPI, and the Fed’s anticipated decision to keep interest rates steady, the US Dollar Index (DXY) returned to the region of its three-day lows. June 13 is the regular weekly deadline for filing Initial Jobless Claims, which is supported by Producer Prices.

Although some of those gains evaporated after Powell’s press conference, the EUR/USD pair managed to mount a quite joyous rebound and move above 1.0800. On June 13, readings on Industrial Production inside the European Union are anticipated.

Currencies

The USD/JPY pair is slightly higher during Thursday’s Asian session, with the goal of maintaining the gains made overnight from the 155.70 region, or from a multi-day low that was reached in response to lower US consumer inflation data. Spot prices, on the other hand, are not particularly positive and are now trading in the 156.75–156.80 range as attention turns to the Bank of Japan (BoJ) policy meeting.

GBP/USD rose to three-month highs well north of 1.2800 following the sharp sell-off in the US Dollar. There are no data releases scheduled for June 13 across the Channel.

USD/JPY reversed three consecutive daily declines, although it bounced off three-day lows near 155.70 as the Greenback trimmed some losses at the end of the day. The Quarterly BSI Large Manufacturing index and weekly Foreign Bond Investment figures will be published on June 13.

AUD/USD briefly retested the area just beyond the 0.6700 barrier against the backdrop of a strong pick-up in the selling bias in the US Dollar. The release of the Australian labour market report takes centre stage on June 13 seconded by Westpac’s Consumer Confidence print.

Commodities

Prices of WTI advanced marginally as traders assessed the Fed’s interest rate decision and another negative weekly report of US crude oil inventories.

Gold prices ended Wednesday’s session marginally on the defensive after it could not sustain a post-Fed move above $2,340 region. Silver charted small gains but it came under pressure soon after hitting the $30.00 mark per ounce.

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