Here is what you need to know on Tuesday, June 20:
Following a three-day weekend in the US, trading conditions normalize on Tuesday and markets seem to have adopted a cautious stance. Housing Starts and Building Permits data for May will be featured in the US economic docket. Several Federal Reserve (Fed) policymakers, including St. Louis Fed President James Bullard and NY Fed President John Williams, will be delivering speeches later in the day.
During the Asian trading hours, the People's Bank of China (PBoC) announced that it lowered the benchmark Loan Prime Rates (LPRs) by 10 basis points (bps) as expected. With this decision, the one-year LPR declined from 3.65% to 3.55%, while the five-year LPR got cut down to 4.20% from 4.30%. This development reminded markets of the loss of momentum in China's economic growth and caused investors to move away from risk-sensitive assets. At the time of press, US stock index futures were down around 0.3% on a daily basis.
Meanwhile, the Minutes of the Reserve Bank of Australia's (RBA) June monetary policy meeting revealed that the board considered a rate rise of 25 basis points or holding the policy rate steady and reconsidering an increase at later meeting. Arguments were "finely balanced" but the board decided the case for an immediate hike was stronger, the RBA noted in its publication. AUD/USD came under heavy bearish pressure early Tuesday and was last seen trading deep in negative territory at around 0.6800.
EUR/USD registered small losses on Monday but didn't have a difficult time regaining its traction. In the European morning, the pair continues to edge higher toward 1.0950. Eurostat will release Construction Output data for April later in the session.
Following Monday's downward correction, GBP/USD staged a rebound to the 1.2800 area early Tuesday. On Wednesday, the UK's Office for National Statistics will publish the Consumer Price Index (CPI) data for May.
USD/JPY climbed above 142.00 for the first time since November in the Asian session on Tuesday but reversed its direction with the Japanese Yen benefitting from safe-haven flows. As of writing, the pair was stretching lower toward 141.50.
Gold price recovered back above $1,950 after having closed modestly lower on Monday. The benchmark 10-year US Treasury bond yield is down nearly 1% early Tuesday, helping XAU/USD find a foothold.
Bitcoin rose nearly 2% on Monday but lost its bullish momentum near $27,000. Ethereum continues to fluctuate in a narrow range slightly above $1,700.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.