The U.S. dollar index (DXY) rose by 0.49% on Wednesday, driven by stronger-than-expected U.S. economic reports, including a 0.9% month-over-month increase in May retail sales and a 3.8% rise in pending home sales—the largest gain in 20 months. The Federal Open Market Committee (FOMC) voted unanimously to maintain the fed funds rate at 3.50%-3.75%, while projecting a potential increase in rates, with nine out of 18 committee members expecting at least one more 25 basis point hike this year.
The EUR/USD fell by 0.77%, influenced by a stronger dollar and the decline of the German 10-year Bund yield to 2.914%, the lowest in 1.75 months. Meanwhile, the Eurozone’s May core Consumer Price Index was revised upward to 2.6% year-over-year. In Japan, the yen reached a 1.75-month low as the dollar strengthened, despite positive economic indicators like an 8.7% rise in April core machine orders.
Precious metals showed mixed results; gold increased by 0.62% to close at +27.00, while silver gained 1.08%. However, long holdings in gold and silver ETFs fell to their lowest levels in several months, following a significant decrease in recent fund investments. Notably, China’s central bank increased its gold reserves by 320,000 ounces to nearly 75 million troy ounces, marking the largest monthly rise in 17 months.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
