The US dollar showed a slight positive trend on Tuesday, reversing its earlier bearish start this week. This was in light of ongoing US-China trade discussions in London, although caution remained ahead of key US inflation data set to be released on Wednesday.
Here’s what to expect on Wednesday, June 11th:
The US Dollar Index (DXY) hovered around the 99.00 level, influenced by stable yields and increasing concern over the US-China trade negotiations. The upcoming US inflation report is noted as a major event, which coincides with weekly MBA mortgage applications and EIA updates on US crude oil inventories.
The EUR/USD currency pair fluctuated between minor losses and gains in the low 1.1400 range, as investors remained cautious during the US-China trade discussions. With no Euro data scheduled, market participants are focusing on speeches from ECB officials Buch, Lane, and Cipollone.
The UK’s employment report showed disappointing results, pushing GBP/USD down to a level around 1.3450, where it has lingered for several days. All eyes are now on Prime Minister Reeves’ review of expenditures.
Further weakening of the Japanese yen has driven USD/JPY to a two-week high of nearly 145.30 on Tuesday, amid a generally flat atmosphere in the currency markets. Next on the agenda are producer prices on the domestic economic calendar.
AUD/USD has managed to maintain daily gains above the 0.6500 threshold, influenced by the latest developments in US-China trade discussions in the UK. The next anticipated data release from Australia is the consumer inflation expectations on June 12th.
WTI crude prices surged over $66.00 per barrel, reaching a new two-month high, as an initially positive outcome from the US-China trade talks seemed promising. However, that momentum faded, leading prices down to around $64.00.
Gold prices experienced a decline on Tuesday, reversing gains made on Monday and settling around $3,330 per troy ounce. This drop may be attributed to the increasing caution surrounding US-China trade issues. Meanwhile, silver saw a notable retracement, reversing three days of consecutive gains, pulling back from proximity to the $37.00 per ounce level, a price not seen since February 2012.
