Forex Today: US Dollar eases after PCE data, Yen remains near intervention zone
The US Dollar Index (DXY) lost momentum on Thursday, retreating toward the 101.40 area after a fresh batch of United States (US) economic data showed sticky inflation, stronger growth, and a resilient labor market.

Here is what you need to know for Friday, June 26:

The US Dollar Index (DXY) lost momentum on Thursday, retreating toward the 101.40 area after a fresh batch of United States (US) economic data showed sticky inflation, stronger growth, and a resilient labor market. Annual inflation in the US, measured by the Personal Consumption Expenditures (PCE) Price Index, climbed to 4.1% in May from 3.8% in April, matching expectations, while core PCE rose to 3.4% YoY.

Additionally, Initial Jobless Claims fell to 215K, and first-quarter Gross Domestic Product (GDP) was revised higher to an annualized 2.1% from 1.6%.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.10% -0.23% -0.02% -0.26% -0.16% 0.00% -0.29%
EUR 0.10% -0.08% 0.13% -0.14% -0.03% 0.16% -0.17%
GBP 0.23% 0.08% 0.21% -0.01% 0.04% 0.26% -0.08%
JPY 0.02% -0.13% -0.21% -0.26% -0.16% 0.00% -0.31%
CAD 0.26% 0.14% 0.01% 0.26% 0.08% 0.28% -0.06%
AUD 0.16% 0.03% -0.04% 0.16% -0.08% 0.17% -0.12%
NZD -0.01% -0.16% -0.26% -0.00% -0.28% -0.17% -0.34%
CHF 0.29% 0.17% 0.08% 0.31% 0.06% 0.12% 0.34%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

EUR/USD traded with mild gains near 1.1370 as the Greenback softened following the PCE release. On the Eurozone side, German sentiment data offered some support to the Euro, with the GfK Consumer Confidence Survey improving to -29.2.

GBP/USD advanced toward the 1.3200 area, benefiting from the broader pullback in the US Dollar (USD).

USD/JPY hovered near 161.80, in intervention territory, as wide US-Japan yield differentials continued to weigh on the Japanese Yen. Traders now look ahead to the upcoming Tokyo Consumer Price Index (CPI) release for June, which will be released early in the Asian session, and could provide fresh clues on the Bank of Japan’s (BoJ) policy path.

AUD/USD gained moderately near the 0.6910 area despite stronger Australian labor market data. Australia’s Employment Change rose by 40.3K in May, beating expectations, while the Unemployment Rate eased to 4.4% from 4.5%.

West Texas Intermediate (WTI) Oil recovered toward the $71.90 per barrel area after renewed supply concerns around the Strait of Hormuz. Oil prices found support after reports of a cargo vessel being hit near Oman, although expectations of improving Middle East flows kept the broader upside limited.

Gold rebounded above the $4,030 area as the US Dollar and Treasury yields moved lower following the PCE report. The metal found support after inflation matched expectations, easing some concerns over an imminent Fed rate hike, although the broader outlook remains tied to US rate expectations.

What’s next in the docket:

Friday, June 26:

  • Tokyo CPI
  • Final University of Michigan Consumer Sentiment.
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XAUUSD
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