As the third week of June kicks off, major currency pairs involving the USD, EUR, and JPY are in the spotlight. With key economic data releases and central bank commentary on the horizon, this week promises high volatility for forex traders.
USD: Dollar Strength Hinges on Economic Data
The U.S. dollar remains firm after the Federal Reserve’s recent rate hike. Traders will focus on this week’s retail sales and jobless claims.
Key Data to Watch:
- U.S. Retail Sales – Expected to rise 0.3% (Wednesday)
- Initial Jobless Claims – Forecast: 235,000 (Thursday)
Technical Outlook:
- USD/JPY: Facing resistance at 157.50
- EUR/USD: Support near 1.0650
EUR: Eyes on German ZEW & ECB Commentary
The euro struggled last week after the ECB held rates steady. This week, attention turns to sentiment data and speeches by Christine Lagarde.
Key Events:
- German ZEW Economic Sentiment (Tuesday)
- ECB President Speech (Thursday)
Technical Outlook:
- EUR/USD: Could retest 1.0700 if sentiment improves
- EUR/GBP: Finding support at 0.8480
JPY: Intervention Watch in Focus
With the BOJ tightening slightly in April, the yen saw brief strength. However, renewed dollar buying and yield differentials are keeping JPY pressured.
Watch For:
- Japan Trade Balance (Thursday)
- Possible MOF (Ministry of Finance) comments on yen weakness
Technical Outlook:
- USD/JPY: RSI shows overbought signals near 157.30
- JPY Crosses: EUR/JPY, GBP/JPY looking extended
Trading Strategy Tips for the Week
- Use tight stop-losses during scheduled news releases.
- Trade with trend on intraday setups; fade extremes cautiously.
- Follow institutional flows by watching bond yields and risk sentiment.
Conclusion: Expect Volatility Across the Board
This week’s forex outlook for USD, EUR, and JPY points to potential breakout moves. Stay alert, plan your trades, and follow the news calendar.
For more real-time updates and technical setups, follow our forex news section daily.
Disclaimer: The above content is for educational purposes only and not intended as financial advice.
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