Forex Today: Dollar’s rally on pause amid extreme overbought conditions
FXStreet News

Forex Today: Dollar’s rally on pause amid extreme overbought conditions

What you need to know on Friday, June 18:

 The American currency extended its gains against most of its major rivals, except the JPY, which strengthened on the back of falling government bond yields. Nevertheless, market players continued to price in the latest hawkish stance from the US Federal Reserve, which hinted at two rate hikes in 2023 while upgrading growth and inflation forecast.  

The EUR/USD pair traded as low as 1.1891, while GBP/USD fell to 1.3895, bouncing just modestly from such lows. The sour tone of equities exacerbated high-yielding currencies’ weakness.

Commodity-linked currencies advanced at the beginning of the day amid strong New Zealand GDP and upbeat Australian employment figures, but the greenback overshadowed it all and resumed its advance, pushing rivals to multi-month lows. The USD/CAD pair trades around 1.2350, its highest since late April. AUD/USD flirted with the year low at 0.7531, with a break below the level opening the door for a steeper slide.

Gold plummeted to $1,767.19 a troy ounce, while crude oil prices were also down, but managed to bounce ahead of the close. WTI settled at $71.00 a barrel.

US Treasury yields retreated from post-Fed peaks. The yield on the 10-year Treasury note currently stands around 1.51% after hitting 1.59%.

Wall Street started the day in the red, although indexes managed to trim some losses ahead of the close. The DJIA and the S&P500 closed in the red, but the Nasdaq added over 100 points.

Three technical Indicators suggest Cardano price may drop to $1 in a few weeks

Like this article? Help us with some feedback by answering this survey:

Rate this content

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.