The Greenback traded with a slightly positive bias on Tuesday, reversing a bearish start to the week and supported by consistent caution on US-China trade talks in London, while prudence also developed ahead of the publication of vital US inflation data on Wednesday.
Here’s what to watch on Wednesday, June 11:
The US Dollar Index (DXY) fluctuated within the 99.00 range due to stable yields and growing apprehension about the US-China trade negotiations. The US Inflation Rate will be the salient event, seconded by the weekly MBA Mortgage Applications, and the EIA’s report on US crude oil inventories.
EUR/USD alternated gains with losses in the low-1.1400 as investors remained prudent amid trade discussions between the US and China. Absent data releases on the euro calendar, the focus ofd attention will be on speeches by the ECB’s Buch, Lane, and Cipollone.
Poor results from the UK jobs report sent GBP/USD to the area of multi-day troughs near 1.3450, just to gather some momentum afterwards. All the attention will be on Chancellor Reeves’ Spending Review.
Further depreciation of the Japanese Yen prompted USD/JPY to advance to two-week highs near 145.30 on Tuesday amid a generalised flattish mood in the FX galaxy. Producer Prices are next on tap on the domestic calendar.
AUD/USD clung to its daily gains above the 0.6500 barrier following developments from the US-China trade discussion in the UK. The next data release in Australia will be the Consumer Inflation Expectations on June 12.
WTI prices surged past the $66.00 mark per barrel, marking new two-month highs, as a potential positive outcome from the US-China trade discussions in London boosted sentiment. However, that initial move faded afterwards, sending the commodity to the red territory near the $64.00 mark.
Gold prices traded in an irresolute fashion on Tuesday, fading Monday’s uptick and lingering around the $3,330 mark per troy ounce amid rising prudence stemming from the US-China trade talks. Silver prices clocked a marked pullback, reversing three consecutive daily upticks, including Friday’s advance to the vicinity of the $37.00 mark per ounce for the first time since February 2012.
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