All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
Greenback goes down vs. its rivals
On Monday, the major American currency went down versus its counterparts, suppressed by a stronger UK pound in the wake of upbeat comments on a Brexit deal from the European bloc’s key negotiator Michel Barnier.
Gauging the greenback’s purchasing power versus a pack of its primary rivals the USD index inched down by 0.34% being worth 95.06.
The UK currency reached a five-week maximum versus the US dollar because Barnier stoked investor expectations of Great Britian clinching a Brexit deal, right after he told that it was quite real to achieve a deal within a time frame of 6-8 weeks.
It comes in the face of reports that the European Union is ready to provide Barnier with a mandate to offer concessions for the purpose of striking a deal with the United Kingdom. Eventually, Great Britain is slated to escape from the European Union even in less than seven months. To be exact, it should take place on March 29, next year.
The currency pair GBP/USD managed to gain by 0.85% hitting $1.3026.
Market experts warned that the UK currency has been extremely susceptible to Brexit-related headlines recently and also sudden profits can soon be retraced if there’s no further confirmation.
The currency pair EUR/USD jumped by 0.41% ending up with $1.1600.
The evergreen buck also lost its footing versus the Canadian dollar having sagged from session peaks, although weakness in crude kept profits in the crude-price-sensitive Canadian dollar in check.
The currency pair USD/CAD went down by about 0.05% hitting C$1.3160 from a session maximum of C$1.3198.
The currency pair USD/JPY inched up by up to 0.08% trading at Y111.12. As for AUD/USD, it managed to rally by 0.110% being worth $0.7112.
Additionally, the USD/TRY proceeded with its dive versus the US currency.
The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
The RBA Rate Statement comes on June 1, at 07:30 GMT+3.
Wednesday will please traders as many economic indicators will be out! The USA, UK, and Euro Area will release PMI reports on June 23 from 10:15 to 16:45 MT.
The Bank of England will release its statement and announce its monetary policy decision at 14:00 MT.
Last week the USD soared versus other major currencies, while gold headed for the biggest weekly loss in 15 months. Let’s see what new moves await us this week!