June 13, 2023 11:35 AM

Today's forex market: US dollar falls as attention to May inflation statistics

Here is the FX forecast for Tuesday, June 13:

The US Dollar remains under pressure early Tuesday, with the US Dollar Index dipping below 103.50 as investors await the publication of the May Consumer Price Index (CPI) data. The European economic docket will include a survey for the Eurozone and Germany. Later in the day, Bank of England Governor Andrew Bailey will address the Economic Affairs Committee of the House of Lords.

The benchmark 10-year US Treasury bond yield varies between 3.7% and 3.75% early Tuesday, while US stock index futures are slightly higher. Investors anticipate that the annual CPI would grow 4.1% in May, down from 4.9% in April.

May CPI Data Expectations Analysis

Following Monday's indecisiveness, the EUR/USD gained positive momentum early Tuesday and rose near 1.0800.

GBP/USD dropped dramatically during Monday's American trading hours before regaining upward momentum in the European morning. According to figures released by the UK's Office for National Statistics, the ILO Unemployment Rate fell to 3.8% in April from 3.9% in March. Wage inflation, as measured by Average Earnings Excluding Bonuses, increased to 7.2% from 6.8%. With this data underlining the UK's tight labor market circumstances, the pound began to outperform its rivals.

For the second day in a row, the price of gold (XAU/USD) fluctuated about $1,960 on Tuesday.

The USD/JPY made little advances on Monday before entering a consolidation phase during Asian trading hours. At roughly 139.50, the pair remains quite quiet.

On Tuesday, the AUD/USD continued its upward trajectory toward 0.6800, reaching its highest level in a month.

On Monday, the USD/CAD broke a five-day losing trend but lost its positive momentum before hitting 1.3400. The pair is trading at 1.3350 as of early Tuesday.

And, Bitcoin remains in a tight band just above $26,000, while Ethereum holds onto minor comeback gains above $1,750.