Forex Today: Dollar’s decline may have found a floor

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What you need to know on Monday, June 27:

The dollar advanced on Friday on the back of higher US PCE inflation, which rose in May 3.4% YoY, its highest reading in almost three decades.  Gains however were modest and the dollar ended the week with modest losses.

US stocks soared, with the Nasdaq and the S&P reaching fresh all-time highs, holding on to gains despite higher government bond yields, following higher US inflation figures.

The EUR/USD pair kept trading within familiar levels, ending the week at around 1.1930. The pound remained under selling pressure, undermined by the BOE’s dovish announcement. GBP/USD settled at 1.3870. The Australian dollar lost ground against its American rival ahead of the weekly close, although the Canadian dollar remained strong.

Gold finished the week little changed around $1,780 a troy ounce. Crude oil prices advanced, with WTI up to $74.00 a barrel.

UK Health Minister Mark Hancock resigned on Saturday after breaking coronavirus-related rules imposed by himself. The news may impact the already weak Sterling at the weekly opening.

The week will start in slow motion from the fundamental side, with the focus on US employment numbers to be out by the end of the week.

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