Market Drivers; US Session, June 17

Even while US yields rose in reaction to an improvement in overall risk appetite trends and a modicum of relief from political unrest in Europe, the US dollar lost some of its recent gains.

Amidst investor speculation of two Fed interest rate cuts in 2024, the USD Index (DXY) posted two consecutive strong daily increases. June 18 is going to be a busy day with business inventories, retail sales, industrial production, and TIC flows. Cook, Barkin, Collins, Kugler, Logan, Musalem, and Goolsbee are among the Fed officials who are also expected to provide new comments and public remarks.

Currencies

The GBP/USD pair recovered composure, ending a run of two consecutive losing sessions and taking back the region above 1.2700. The UK calendar’s next event is the June 19 announcement of the inflation rate.

Following Friday’s multi-week lows, the EUR/USD pair showed some signs of life, trading well south of the 1.0700 support level. On June 18, the final rate of inflation in the euro zone and the state of the German and European economies are anticipated.

With a very fortunate start to the week, the USD/JPY pair kept the bullish trade in place and flirted with the 158.00 level once more. On June 18, the Japanese docket will be cleared.

The AUD/USD pair fluctuated between gains and losses around the 0.6600 region before to the RBA’s pivotal interest rate decision. The RBA will make an interest rate decision on June 18.

Commodities

The rebound in US yields and some incipient risk-on trade weighed on gold prices and sparked modest losses on Monday. By the same token, Silver partially faded Friday’s advance and revisited the low-$29.00s.

Prices of WTI added to Friday’s advance and challenged the key 200-day SMA above the $79.00 mark per barrel.


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