The US dollar has lost ground, reaching four-day lows, largely due to cautious comments from Federal Reserve officials amid worsening geopolitical tensions in the Middle East. Investors are also gearing up for Chairman Powell’s testimony and upcoming data on US consumer confidence.
Here’s what to expect on Tuesday, June 24th:
The US Dollar Index (DXY) has fallen for a third consecutive day, dropping to around the 98.40 mark as US yields have generally pulled back. Chairman Powell is set to testify before the U.S. House Financial Services Committee, with additional remarks from Hammack, Collins, and Burr. On the agenda is the Consumer Trust Gauge from the Conference Committee, alongside weekly reports from the API regarding the FHFA’s Home Price Index, the Richmond Fed’s Manufacturing Index, and U.S. Crude Oil Reserves.
The EUR/USD pair has climbed to a four-day high, driven by heightened risk-averse sentiment and increased weakness in the dollar. The German IFO business climate report will be a significant focus on the domestic calendar, alongside remarks from ECB officials De Guindos, Lagarde, and Lane.
Meanwhile, GBP/USD has rebounded sharply, reaching nearly 1.3530 after recovering from a three-week low of around 1.3370 due to renewed selling pressure on the dollar. The CBI Industrial Trends order will be featured, supported by speeches from BoE officials Bailey, Ramsden, Greene, and Breeden.
For USD/JPY, the currency has surged to just over 148.00, marking a six-week high. The BOJ’s summary of opinions is expected, ahead of the final release of key economic indicators. Additionally, BoJ’s Tamura is scheduled to speak.
AUD/USD reversed its earlier drop below the 0.6400 level, managing to retest the 0.6450 region by day’s end. Following the Reserve Bank of Australia’s Tap, the monthly CPI indicator is set to be released on June 25th.
WTI crude prices plummeted over 7%, now hovering near the $68.00 per barrel mark in response to Iran’s retaliation against U.S. military bases in the UAE.
Gold is likely to maintain a bullish stance, trading close to the significant mark of $3,400 per troy ounce as geopolitical tensions escalate following attacks on U.S. military installations in the area. Silver prices have experienced fluctuations, moving between slight losses and gains around $36.00 per ounce.
