Forex Today: US Dollar edges lower as focus shifts to May inflation data


Here is what you need to know on Tuesday, June 13:

The US Dollar stays on the back foot early Tuesday, with the US Dollar Index falling below 103.50, as investors gear up for the release of the May Consumer Price Index (CPI) data. ZEW Survey for the Eurozone and Germany will be featured in the European economic docket. Later in the day, Bank of England Governor Andrew Bailey will speak before the House of Lords Economic Affairs Committee.

US stock index futures trade modestly higher and the benchmark 10-year US Treasury bond yield fluctuates between 3.7% and 3.75% early Tuesday. Investors expect the annual CPI to rise 4.1% in May, down sharply from 4.9% increase recorded in April.

CPI Data Expectations: Analyzing May US inflation.

Following Monday's indecisive action, EUR/USD gathered bullish momentum early Tuesday and climbed toward 1.0800.

GBP/USD fell sharply during the American trading hours on Monday but regathered bullish momentum in the European morning. The data published by the UK's Office for National Statistics revealed that the ILO Unemployment Rate declined to 3.8% in April from 3.9% in March. Additionally, wage inflation, as measure by the Average Earnings Excluding Bonus, climbed to 7.2% from 6.8%. With this report highlighting tight labor market conditions in the UK, Pound Sterling started to outperform its rivals.

Gold price continues to move up and down at around $1,960 for the second straight day on Tuesday. Despite the broad USD weakness, the lack of action in the US T-bond yields makes it difficult for XAU/USD to find direction.

USD/JPY registered small gains on Monday but went into a consolidation phase during the Asian trading hours. The pair stays relatively calm at around 139.50. 

AUD/USD extended its uptrend toward 0.6800 and touched its highest level in a month on Tuesday. 

USD/CAD snapped a five-day losing streak on Monday but lost its bullish momentum before reaching 1.3400. The pair edges lower early Tuesday and trades near 1.3350. 

Bitcoin continues to trade in a tight channel slightly above $26,000 and Ethereum clings to modest recovery gains near $1,750.

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