Forex Major Currencies Outlook (June 21, 2016)

There were no reports out of the US economy, leaving traders to react to risk sentiment. Fed head Yellen has a speech scheduled today and her remarks could set the tone for dollar price action. 

EUR

The euro advanced against the dollar but was weaker to the pound. Data from Germany came in line with expectations as producer prices showed a 0.4% increase as expected. The German constitutional court ruling is scheduled today and their ruling on the ECB OMT could also have a significant impact on the euro. German ZEW economic sentiment data and a speech by Governor Draghi are also on the docket. 

GBP

The pound was able to keep up with its climb as a couple more Brexit surveys showed a lead in favor of those voting to stay in the EU. Today has the public sector borrowing figure and the CBI industrial order expectations data on tap, although traders could pay closer attention to Brexit surveys. 

CHF

The franc was stuck in consolidation to the dollar and was mostly weaker against the euro, even though there were no reports out of the Swiss economy. Today has the Swiss trade balance due and a larger surplus of 2.88B CHF is eyed. 

JPY

The yen was on stronger footing towards the end of the US session as traders likely booked profits off their recent shorts. Yen intervention rumors appear to have subsided, allowing traders to prop up the yen in times of risk aversion. There were no hints of actual central bank intervention in the BOJ minutes as well. The Japanese all industries activity index is due today and a 1.3% gain is eyed. 

Commodity Currencies (AUD, NZD, CAD)

The comdolls continued to bank on risk appetite yesterday but were no match to yen strength. Earlier today, the RBA minutes didn't show any clues of when the central bank might cut interest rates again, allowing the Aussie to stay afloat. There are no other reports due from the comdoll economies for the rest of the day so risk sentiment could push these currencies around. 

By Kate Curtis from Trader's Way