Forex Today: Dollar Selling Halts, Focus on Fed Speeches and Confidence Data

This is what you need to know to trade today friday june 16:

The US dollar (USD) suffered heavy losses against its main rivals on Thursday, with the DXY Dollar Index touching its lowest level in more than a month near 102.00. The DXY Index consolidates its weekly losses early Friday as investors wait comments from Federal Reserve officials. The June preliminary survey the University of Michigan on consumer sentiment it will also be published in the US Economic Agenda. During the European session, Eurostat will publish the revisions of the inflation data for May.

In United States, initial weekly claims for unemployment benefits stood at 262,000 during the week ending June 10, thus exceeding market expectations of 249,000. Other US data showed that retail sales rose 0.3% in May, while the Federal Reserve Bank of Philadelphia manufacturing survey fell to -13.7 points in June from -10.4 in May. Mixed US data caused the dollar to fall further during the American session on Thursday.

For his part, The European Central Bank (ECB) announced on Thursday an increase in official interest rates of 25 basis points (bp), as expected. ECB revised core inflation forecastswhich excludes energy and food prices, especially for 2023 and 2024, citing previous upside surprises and the implications of the strength of the labor market for the speed of disinflation.

At the post-meeting press conference, “given a material change to our baseline, it is very likely that we will continue to hike rates in July,” ECB President Christine Lagarde said. Inflation revisions, coupled with Lagarde’s hawkish tone, boosted the Euro and the pair EUR/USD advanced to its highest level in more than a monthabove 1.0950, before pulling back below that level early on Friday.

During the Asian session, the Bank of Japan has kept its monetary policy unchanged. The governor of the Bank of Japan, Kazuo Ueda, has stated that “responding to a premature rate hike is more difficult than responding to an excessive rise”. He USD/JPY it has gained bullish momentum and is now gaining more than 0.5% on the day above 141.00.

He GBP/USD took advantage of broad-based USD weakness on Thursday and rose above 1.2800 for the first time since April 2022. In European morning, the pair is trading in a tight range slightly above 1.2800.

The price of Gold rose sharply after falling to three-month lows below $1,930 on Thursday. Falling US Treasury yields lifted XAU/USD and snapped a four-day losing streak. As of early Friday, the price of gold continues to rise and is now trading slightly above $1,960.

After the fall on Wednesday, the Bitcoin It rose almost 2% on Thursday before settling around $25,500 early on Friday. He ethereum It is struggling to gain recovery momentum and is trading below $1,700, despite posting small gains on Thursday.