Forex Markets Today 19 June 2023

Forex market today

Wednesday 7/19/2023

 Britch Bound

Sterling fell against its major peers early Wednesday after weaker-than-expected inflation readings for June. The European Union's statistics office Eurostat will release revisions to HICP readings for June and the US economic calendar will include housing starts and building permits.

UK inflation, as measured by the change in the Consumer Price Index (CPI), fell to 7.9% y/y in June from 8.7% in May. This reading came in below market expectations of 8.2%. In addition, the core CPI fell to 6.9% from 7.1% in the same period, while the producer price index (input) fell 2.7%. Finally, the retail price index increased by 0.3% on a monthly basis, down from the 0.7% recorded in May. After these readings, the GBP/USD pair came under severe downward pressure and fell to its lowest levels in a week below the 1.2950 region.

Reflecting broad-based sterling weakness, EUR/GBP was last seen trading at its highest since late May above 0.8650 and GBP/JPY was down 0.3% at 180.50.

US Dollar Index 

On Tuesday, the US Dollar Index (DXY) managed to rally early in the US session despite mixed macro data releases, but lost its bullish momentum. The positive risk sentiment caused the USD to struggle to strengthen further and the US Dollar Index (DXY) posted slight gains. Early Wednesday, DXY remains in positive territory above 100.00.

EUR/USD remains in a bearish mood, falling towards 1.1200 in early European session. However, the sharp rise seen in EUR/GBP is helping the pair limit its losses for the time being. Eurozone Annual HICP Confirmation is expected to be confirmed at 5.5%.

New Zealand Dollar

During the Asian session, data from New Zealand revealed that the annualized Consumer Price Index (CPI) fell to 6% in the second quarter from 6.7% in the first quarter, compared to market expectations of 5.9%. NZD/USD rose with the initial reaction but reversed ahead of the European session. At the time of writing, the pair is down more than 0.5% on the day at 0.6230.

Japness Yen

After the volatile move on Tuesday, the USD/JPY pair gained momentum and rose above 139.50 in the European morning Wednesday.

GOLD

Gold benefited from an extended decline in US Treasury yields on Tuesday and rose to its strongest level in nearly three months above the $1980 region. XAU/USD is consolidating and fluctuating below the $1980 region early Wednesday.