Here is what you need to know on Thursday, June 29:
The US Dollar (USD) stays resilient against its rivals early Thursday, with the US Dollar Index holding at two-week highs near 103.00 following Wednesday's upsurge. European Commission will publish the business and consumer sentiment data for June in the European session. Later in the day, inflation figures from Germany and the US Bureau of Labor Statistics' final revision to the first-quarter Gross Domestic Product (GDP) growth alongside the weekly Initial Jobless Claims data will be watched closely by market participants.
At a policy panel at the ECB Forum on Central Banking on Wednesday, FOMC Chairman Jerome Powell noted that they believe there is more tightening coming, driven by the strong labor market. While speaking at an event in Spain early Thursday, Powell repeated his hawkish message and reminded markets that a strong majority of policymakers expect two or more rate hikes by the end of the year. Meanwhile, the Federal Reserve's Bank Stress Test revealed that large US banks are well-positioned to weather a severe recession and continue to lend.
EUR/USD fell below 1.0900 during the Asian trading hours before staging a modest rebound. While speaking at the same panel with Powell, ECB President Chritsine Lagarde reiterated that another rate hike is very likely in July but refrained from confirming any other policy steps later in the year. In the meantime, annual Consumer Price Index in Spain rose 1.9% in June, down sharply from the 3.2% increase recorded in May.
GBP/USD lost more than 100 pips and came within a touching distance of 1.2600 on Wednesday. The pair is having a difficult time gaining direction early Thursday.
USD/JPY climbed to its highest level since November above 144.70 in the European morning on Thursday but lost more than 50 pips in a matter of minutes following that jump. As of writing, the pair was trading slightly below 144.50. In the Asian session on Friday, Tokyo Consumer Price Index, Industrial Production and Unemployment Rate data will be featured in the Japanese economic docket.
Hawkish central bank rhetoric continued to weigh on Gold price and XAU/USD fell toward $1,900, touching its lowest level since early March in the process.
Bitcoin lost 2% on Wednesday but managed to hold comfortably above $30,000. Ethereum came within a touching distance of $1,800 mid-week before recovering toward $1,850 on Thursday.
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