Forex Today: The Dollar looks bid ahead of US CPI, Fed


The Greenback extended its promising start to the week and kept the risk complex under pressure on Tuesday as market participants continued to evaluate political jitters in Europe and pre-FOMC cautiousness started to kick in.

Here is what you need to know on Wednesday, June 12:

The USD Index (DXY) extended its march north of the 105.00 barrier ahead of key data releases. On June 12, the US Inflation Rate will take centre stage seconded by the FOMC meeting and the press conference by Chief J. Powell.

EUR/USD remained well on the downside and reached new multi-week lows near 1.0720 amidst Dollar’s gains and persistent political concerns. Final Inflation Rate in Germany will be the sole data release in the region on June 12 along with the speech by the ECB’s Mc Caul.

GBP/USD alternated up & downs in the low-1.2700s against the backdrop of further gains in the Greenback and poor prints from the UK labour market report. GDP figures will be at the centre of the debate on the UK docket on June 12, followed by Construction Output, Balance of Trade, Industrial and Manufacturing Production and the NIESR Monthly GDP Tracker.

USD/JPY maintained its bullish stance past the 157.00 barrier on the back of gains in the Dollar and despite declining US and Japanese yields. Producer Prices are due in Japan on June 12.

AUD/USD managed to bounce off daily lows in the 0.6590-0.6585 band despite the Dollar’s advance and the poor session in the commodity complex.

WTI prices retreated marginally amidst the strong Dollar and ahead of the key FOMC event on Wednesday.

Gold prices clung to its daily gains above the $2,300 mark per troy ounce amidst rising cautiousness prior to the publication of US CPI and the Fed’s interest rate decision. Silver resumed its downtrend and revisited the area of monthly lows around the $29.00 mark per ounce.

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