Forex Today: Political concerns bolster the Dollar

Pablo Piovano FXStreet

Extra gains in the US Dollar came from an unexpected resurgence of effervescence in the political arena on the old continent as investors evaluated the results from the European parliamentary elections on June 9.

Here is what you need to know on Tuesday, June 11:

The USD Index (DXY) started the week on a strong foot and advanced to multi-week tops past the 105.00 barrier. On June 11, the NFIB Business Optimism Index is only due.

EUR/USD traded heavily on the defensive and visited the 1.0730 region on the back of the resurgence of political concerns following the European parliamentary elections on Sunday. Absent data releases on the euro docket on June 11, the focus of attention will likely be on speeches by the ECB’s Busch, Lane and Elderson.

GBP/USD managed to partially reverse Friday’s strong retracement, reclaiming the 1.2700 barrier with certain conviction. The UK’s labour market report will be unveiled on June 11.

USD/JPY climbed to five-day highs north of the 157.00 yardstick in response to the marked uptrend in the dollar and mixed US yields. The Japanese docket includes Machinery Tool Orders on June 11.

AUD/USD bounced vigorously and surpassed the 0.6600 mark, recouping part of the ground lost on Friday’s intense sell-off. On June 11 comes the NAB Business Confidence index.

Prices of WTI advanced further and flirted with the $78.00 mark per barrel on auspicious forecasts ahead of the kickstart of the US driving season.

Prices of Gold left behind part of Friday’s pronounced decline and reclaimed the area above the $2,300 mark per troy ounce with eyes already set upon US CPI data and the FOMC gathering. Silver followed suit and remained on track to retest the key $30.00 mark per ounce following the steep pullback seen in the previous session.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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