Market Drivers; US Session, June 19

Mohamed Abdelhamid 20 June, 2024 3:06 am Commodities, Forex Market, Market Update

On Wednesday, investors remained mainly focused on the timing of Fed rate cuts. Attention will, next, shift to the BoE meeting as well as the flash PMIs readings.

Currencies

EUR/USD advanced marginally and managed to retest the 1.0750 zone amidst the irresolute price action in the US Dollar. On June 20, the European Commission will release its advanced gauge of Consumer Confidence.

GBP/USD edged further up and kept the optimism well in place following the UK CPI results and ahead of Thursday’s BoE event. The BoE is expected to keep its policy rate unchanged on June 20.

USD/JPY rose for the fifth session in a row, although it failed to retest or surpass the 158.00 barrier. The weekly Foreign Bond Investment figures are expected on June 20.

AUD/USD picked up extra pace and added to Tuesday’s gains, re-shifting its attention to the 0.6700 hurdle. In Oz, the next release of note will be the flash Judo Bank Manufacturing and Services PMIs on June 20.

The US Dollar Index (DXY) ended the session barely changed amidst reduced activity in response to the Juneteenth Day holiday. The weekly Mortgage Applications by MBA are due on June 20, seconded by Building Permits, Housing Starts, the Philly Fed Manufacturing Index, the usual Initial Jobless Claims, and the speech by the Fed’s Barkin.

Commodities

Gold navigated a narrow range around $2,330 per troy ounce amidst the Dollar’s inconclusive session and the inactivity in the US money markets. Silver, instead, climbed to five-day highs and approached the key $30.00 mark per ounce.

WTI reached a new high past the $81.00 mark per barrel, although that initial move fizzled out afterwards, leaving the commodity slightly on the defensive for the day.

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