Here’s what’s happening on Wednesday, June 18th:
After a turbulent Tuesday, financial markets are showing more stability as we head into Wednesday. Investors are holding their breath for the Federal Reserve’s policy announcement. Besides updating their policy stance, the US Central Bank will also share its latest Economic Forecast. On the economic calendar, early unemployment claims and housing starts data for May will be released.
US Dollar (USD) President Trump’s recent comments have prompted a rise in safe-haven assets, hinting at potential US involvement in the escalating Israeli-Iran conflict. He stated, “We now have full and complete control of Iran’s skies,” and called Ayatollah Ali Khamenei an “easy target.” Following these remarks, the USD index jumped by 0.7% on Tuesday, while Wall Street’s primary index dipped between 0.7% and 1%. As of early Wednesday, the USD index is hovering around 98.50, with US stock index futures showing slight gains.
This week’s US Dollar Price
The table below reflects the changes in the USD against various currencies this week, with the dollar performing strongest against the British pound.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.22% | 0.76% | 0.29% | 0.54% | -0.25% | -0.19% | 0.61% | |
| EUR | -0.22% | 0.42% | 0.08% | 0.33% | -0.35% | -0.40% | 0.39% | |
| GBP | -0.76% | -0.42% | -0.33% | -0.09% | -0.76% | -0.81% | -0.02% | |
| JPY | -0.29% | -0.08% | 0.33% | 0.24% | -0.84% | -0.82% | -0.10% | |
| CAD | -0.54% | -0.33% | 0.09% | -0.24% | -0.72% | -0.73% | 0.07% | |
| AUD | 0.25% | 0.35% | 0.76% | 0.84% | 0.72% | -0.05% | 0.74% | |
| NZD | 0.19% | 0.40% | 0.81% | 0.82% | 0.73% | 0.05% | 0.80% | |
| CHF | -0.61% | -0.39% | 0.02% | 0.10% | -0.07% | -0.74% | -0.80% |
The heatmap indicates the rate of change among major currencies. Selecting a base currency from the left column and an estimated currency from the top row shows the corresponding rate of change.
As for the Fed, it’s widely anticipated that policy rates will hold steady in the range of 4.25% to 4.5%. Interest rates, along with forecasts for inflation and growth, could stir market reactions. Later today, Federal Reserve Chair Jerome Powell will present a policy statement and address questions from the media.
Earlier, the UK’s National Bureau of Statistics shared that annual inflation, tracked by the Consumer Price Index (CPI), slipped from 3.5% in April to 3.4% in May, which was expected. Month-to-month, CPI increased by 0.2%, after a 1.2% rise noted the previous month. Regarding GBP/USD, there wasn’t a significant reaction to these figures, with trading just above 1.3450. The Bank of England’s interest rate decision is set to be announced on Thursday.
As for EUR/USD, after dropping over 0.5% on Tuesday, it’s now showing signs of recovery and is stable above 1.1500. Several European Central Bank (ECB) officials are scheduled to speak later today.
In terms of gold, it remained unchanged on Tuesday as it struggled to surpass $3,400. By early Wednesday, XAU/USD is hovering just above $3,380.
When it comes to oil, prices saw an increase late Tuesday, with West Texas Intermediate (WTI) barrels marking the highest settlement since January, closing above $73.50. However, WTI is backtracking early Wednesday, moving below $73.
In Japan, data revealed a 9.1% decline in monthly machine orders for April during early Asian trading. After a three-day closure in the previous range, USD/JPY is trending lower, trading around 145.00.
