Forex Today: Dollar extends gains, Musk triggers Bitcoin melt-up, Fed eagerly awaited

Yohay Elam FXStreet

Here is what you need to know on Monday, June 14:

Markets are relatively calm on Monday as traders already have Wednesday's Fed decision in mind. US infrastructure talks seem stuck. Tesla's Musk lifted boosted Bitcoin while Britain is set to push back the reopening. Oil extends its upward march and gold consolidates its losses.

The US dollar has been edging higher, extending gains recorded on Friday. The University of Michigan's Consumer Sentiment Index beat expectations in June while its inflation component dropped. That somewhat contrasts the stronger-than-estimated Consumer Price Index figures published earlier.

While the calendar is relatively light on Monday, tensions are mounting toward Wednesday's Federal Reserve decision. Analysts seem split between calling for the bank to provide the first hint of tapering its bond-buying scheme and no change in policy at this juncture.

The Fed holds the market – How long will it last?

President Joe Biden's efforts to approve infrastructure spending have reportedly run into objections from his own party. That dampens hope arising from a bipartisan proposal discussed last week. The president continues touring Europe and US 10-year Treasury yields are hovering below 1.50%.

UK Prime Minister Boris Johnson is expected to announce a four-week delay in plans to fully reopen the economy, moving "Freedom Day" from June 21 to July 19. The Delta variant of COVID-19 continues spreading rapidly. Disagreement between Britain and the EU was apparent at the G-7 meeting.

Leaders of the group confronted China on human rights in Xinjiang and the origins of COVID-19. Markets seem to shrug off this development.

Tesla's founder Elon Musk has been flexing his muscle around Bitcoin's price, this time pledging to invest in BTC if more mining comes from renewable sources. Bitcoin surged above $39,000, Etehreum changes hands at around $2,500 and Shiba received a boost.

WTI Crude Oil has been holding onto its gains and trades at around $71 in hopes of stronger demand. Gold continues trading in a tight inverse correlation with the dollar, changing hands at around $1,864.

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Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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