The US Dollar Index (DXY) slipped 0.27% to about 99.80 ahead of a week dominated by policy decisions from the Fed, the Bank of Japan (BoJ), the Bank of England (BoE) and the RBA. EUR/USD finished 0.4% higher near 1.1570, with attention turning to Eurozone Industrial Production, final HICP inflation and PPI, while Germany’s ZEW Survey is due to gauge current conditions and sentiment. GBP/USD rose 0.49% to around 1.3400; the BoE is expected to hold rates, with the voting split in focus alongside UK CPI, PPI, wages, employment data, jobless claims, consumer confidence and Retail Sales.

USD/JPY ended near 160.20, keeping intervention risks in view ahead of the BoJ decision, its press conference, Japan trade data, National CPI and the BoJ Monetary Policy Meeting Minutes. AUD/USD was little changed, closing near 0.7050, with markets watching the RBA decision, policy statement and press conference for guidance on inflation and the policy path. WTI traded near $84.30 a barrel after a Friday sell-off triggered by US President Donald Trump’s decision on Thursday not to proceed with bombing Iran, while gold held around $4,215 as Middle East tensions and the coming Fed meeting shaped demand; the calendar also includes multiple scheduled appearances from ECB officials between Monday, 15 June and Friday, 19 June, plus the FOMC press conference on Wednesday.

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Central Banks And Major Foreign Exchange Pairs In Focus

The US Dollar Index (DXY) is holding firm near 105.20 as we head into a major week for central banks. All eyes are on the Federal Reserve’s decision next Wednesday, where recent data showed annual inflation holding at 3.4%. We expect them to hold rates steady, but the real focus will be on any signals about the timing of future rate cuts.

EUR/USD is trading cautiously around the 1.0750 mark, having found some footing after the European Central Bank’s rate cut earlier this month. Upcoming German ZEW economic sentiment and final Eurozone inflation data will be watched closely for clues on the ECB’s next move. We’ll be listening to President Lagarde’s speeches for any hints on the pace of future easing.

GBP/USD is hovering near 1.2720 ahead of the Bank of England’s interest rate decision. With UK inflation proving stickier than expected, recently clocking in at 3.0%, a rate hold is the most likely outcome. The key for traders will be the vote split and any hawkish language in the policy statement.

We are watching USD/JPY closely as it trades near 159.80, keeping the risk of government intervention high. The Bank of Japan is expected to discuss reducing its bond purchases at its upcoming meeting. Any signs of a slower-than-expected policy normalization could send the pair higher, testing officials’ resolve.

AUD/USD is trading sideways around 0.6610 as we await the Reserve Bank of Australia’s policy meeting. The RBA will almost certainly keep rates unchanged, given that recent monthly inflation indicators have remained elevated. We will be analyzing their statement for any shift in tone regarding future policy direction.

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Commodities: Oil And Gold Remain Sensitive To Policy And Geopolitics

West Texas Intermediate (WTI) crude oil is trading near $80.50 per barrel, finding support from the recent OPEC+ decision to extend production cuts. However, concerns about a slowing global economic outlook could cap any significant price gains. We believe prices will remain sensitive to inventory data and geopolitical headlines from the Middle East.

Gold remains firm near $2,350 an ounce, supported by ongoing geopolitical uncertainty and continued central bank buying. The metal’s next move will likely be dictated by the Federal Reserve’s tone on Wednesday. A hawkish message could create headwinds, but underlying safe-haven demand should provide a floor for prices.