Forex Today: Majors remain quiet ahead of key events

Here is what you need to know on Wednesday, June 8:

The dollar struggled to find demand amid improving market mood on Tuesday but the benchmark 10-year US Treasury bond yield reclaimed 3% early Wednesday, helping the currency stay relatively resilient against its rivals. Eurostat will release the first quarter Gross Domestic Product (GDP) figures for the euro area. There will be a 10-year US Treasury note auction later in the day and the US Census Bureau will publish the Wholesale Inventories data. Ahead of the European Central Bank's (ECB) policy announcements on Thursday and the US inflation data on Friday, the trading action could remain subdued. 

In the absence of high-impact data releases, Wall Street's main indexes registered strong gains on Tuesday. US stock index futures, however, are down between 0.3% and 0.4% early Wednesday, pointing to a cautious market mood so far on the day. The US Dollar Index, which tracks the greenback's performance against a basket of six major currencies, posts modest gains near 102.50.

The Reserve Bank of India announced on Wednesday that it hiked its key repo rate by 50 basis points to 4.9% while leaving the reserve repo rate unchanged at 3.35%. USD/INR returned to 77.70 after initially spiking to 77.95.

A day ahead of the release of China’s trade balance data, China's Vice Commerce Minister said in a statement that importers and exporters remain under pressure due to logistics problems and rising material prices. 

EUR/USD declined to a five-day low of 1.0652 on Tuesday but managed to recover its losses. The pair trades slightly below 1.0700 in the European session.

GBP/USD ended up closing in positive territory supported by risk flows on Tuesday after having dipped to a multi-week low below 1.2500. The pair was last seen consolidating its gains below 1.2600.

USD/JPY trades at its highest level in 20 years above 133.00. The data from Japan showed that the GDP contracted at an annualized pace of 0.5% in the first quarter. Bank of Japan Governor Haruhiko Kuroda noted on Wednesday that he is withdrawing his remark about households' acceptance of price hikes. “Rapid yen weakening in a short period of time as seen recently is undesirable," Kuroda added but these comments failed to help the yen find demand.

Gold took advantage of retreating US T-bond yields on Tuesday and snapped a two-day losing streak. XAU/USD seems to have steadied near $1,850 in the European session.

Bitcoin continues to edge lower after posting small daily losses on Tuesday and was last seen losing 2% on the day at $30,500. Ethereum stays on the back foot and trades within a touching distance of $1,800.