Forex Today: Dollar strengthens further

FX

What you need to know on Monday, June 21:

The greenback kept rallying on Friday, posting its best weekly performance for this year. The advance was an extension of the post-Fed rally, as the US central bank catch investors off guard by bringing forward chances of rate hikes to 2023.

Stocks fell in Europe and the US, weighing on high-yielding currencies. The dollar run despite US government bond yields continued to retreat from post-Fed highs. The yield on the 10-year US Treasury note closed the week at 1.44%.

The EUR/USD par settled at 1.1860, while GBP/USD trades around 1.3800, both at their lowest in two months. ECB’s President Christine Lagarde is set to speak this Monday and could refer to monetary policy. The European Central Bank is not expected to change its ultra-loose monetary policy.

The sour tone of the UK currency was also backed by coronavirus-related concerns amid the exponential growth of new contagions related to the Delta variant, which may delay further easing lockdown measures.

AUD/USD plunged to fresh 2021 lows. The sour tone of equities and falling gold prices weighed on the pair.The bright metal fell to 1,760.87 a troy ounce, its lowest in almost two months.

USD/CAD settled at 1.2470, led by dollar’s demand and falling equities. Crude oil prices retreated modestly, with WTI ending the week at $71.00 a barrel.

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