Dollar grows ahead of US inflation data, Gold edged lower

Updated: June 15, 2021

USD/CAD: USD/CAD is consolidating around 1.2115 amid a sluggish Asian morning on Wednesday. The loonie pair showed a bullish dynamic for the first time in three days yesterday amid broad US dollar growth and traders’ being cautious ahead of today’s Bank of Canada monetary policy statement. It’s important to note that the price ignored WTI which is the main export commodity in Canada and showed the strong dynamic for the last day. However, fears of downbeat comments from the Bank of Canada followed by the recently weaker GDP data may limit the pair’s downside. Additionally, a lack of major data/events and indecision ahead of Thursday’s key US inflation and ECB may keep favoring the US dollar.

BUY STOP 1.2150/TP 1.2270/SL 1.2000

 

EUR/USD: EUR/USD fell yesterday, having reached 1.2170 level during early morning in Asia. The major currency pair broke a two-day uptrend the previous day while extending pullback from the lowest level since the middle of May. Generally speaking, trading was dull despite a busy macroeconomic calendar, as investors remained focused on US inflation data and the European Central Bank announcement on monetary policy. However, these events didn’t affect the European currency much. Today the macroeconomic calendar will remain light, as Germany will release the April Trade Balance, while investors keep waiting for key events to be published on Thursday. The US will publish its latest inflation data, while the European Central Bank is going to announce its latest decision on monetary policy.

BUY 1.2170/TP 1.2300/SL 1.2130

 

Gold: Gold bears dominated yesterday, pushing the quotes into the red zone during the American session. After reaching a daily high of $1.903, however, the pair lost its strength and had dropped all the way to $1.883 before started consolidation. The data from the US published on Tuesday showed that the goods and services deficit declined by $6.1 billion in April. Additionally, the Business Optimism Index edged lower in April. According to Job Openings data, the indicator registered a new high of 9.3 million, compared to analysts’ estimates of 8.3 million. However, these figures failed to trigger a noticeable impact on the main currencies and gold action.

BUY STOP 1900.00/TP 1917.00/SL 1893.70