Forex Today: Dollar on the backfoot

Here is what you need to know on Tuesday, June 23:

 The dollar edged lower this Monday, losing ground, particularly in the US afternoon. Mixed data and coronavirus cases in the country surging at “unacceptable levels,” according to Texas governor, were behind the greenback’s slide.

The EUR/USD pair closed the day with gains around 1.1250. Consumer Confidence came in better-than-expected. ECB’s Vice President De Guindos said that the Governor Council would continue to evaluate PEPP, are there are substantial downside risks, in particular, if the easing of containment measures turns out to be premature. He added that he expects economic activity to rebound in the second half of the year.

 The GBP/USD pair settled around 1.2460, near its daily high, amid broad dollar’s weakness by the end of the day BOE Governor´s Andrew Bailey hit the wires on Monday, and he said that the central bank would need to reduce its balance sheet before raising rates significantly, indicating that “elevated balance sheets could limit the room for manoeuvre in future emergencies.”

News made the rounds about the US preparing a new stimulus package of over $1 trillion. Infrastructure spending could include rural broadband on top of traditional spending if included in the bill as it looks like it will, plus unemployment extension and return to work incentives, according to FOX news.

Asian and European equities closed in the red, although Wall Street managed to close the day in positive territory. Commodities were the best performers, with spot gold flirting with $1,760.00 a troy ounce and WTI ending the day above $40.00 a barrel.

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