The U.S. dollar index (DXY) fell by 0.32% on June 15, 2023, as falling crude oil prices—down over 3%—diminished inflation expectations, potentially influencing the Federal Reserve’s monetary policy. The University of Michigan’s consumer sentiment index for June was revised slightly up to 49.5, below the 50.0 expected, while May wholesale inventories rose by 0.3% month-over-month, underperforming expectations of 0.4%. In contrast, May retail inventories increased by 0.6%, exceeding the anticipated growth of 0.5%.
In Europe, the euro gained by 0.47%, supported by the weaker dollar and falling crude oil prices, which are beneficial for the Eurozone’s energy imports. The European Central Bank’s May 1-year CPI expectations decreased to 3.5%, lower than the predicted 3.9%. Meanwhile, the dollar-to-yen exchange rate stood at above 160 yen per dollar, raising the risk of currency intervention by Japanese authorities amid low interest rates.
Gold and silver prices rose sharply, with August COMEX gold increasing by $55.00 (+1.36%) and July COMEX silver by $0.889 (+1.52%), driven by a weaker dollar and lower inflation expectations following the drop in crude oil prices. Notably, holdings in China’s PBOC gold reserves rose by 320,000 ounces to a total of 74.96 million ounces in May, marking the largest increase in 17 months.
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