Forex Today: Dollar strengthens, Antipodeans currencies tumble

After the ECB Sintra Forum, the focus turns to economic data. On Thursday, Japan and Australia will report on retail sales. The New Zealand ANZ Business Survey is also due during Asian hours. Later in the day, the focus will be on inflation data from the Eurozone. The US will report Jobless Claims, a new estimate of Q1 GDP, and Pending Home Sales.

Here is what you need to know on Thursday, June 28:

Central bankers at Sintra ratified their respective monetary policy stance and the 'data-dependence' path, which came as no surprise. The focus now turns to economic data, particularly inflation. Bank of England's (BoE) Bailey, European Central Bank (ECB) Lagarde, and Federal Reserve's (Fed) Powell mentioned that there is still work to do, as they see inflation above the target for the time being and do not see rate cuts on the horizon.

Australia and Italy reported a slowdown in their annual Consumer Price Index rates, with readings below expectations. On Thursday, it will be the turn of Germany and Spain to report their data, ahead of Friday's Eurozone release. The US will report on Friday the Core Personal Consumption Expenditure Index, the Fed's preferred measure of consumer inflation.

'I don't see us getting back to 2% inflation this year or the next; I see us making progress,' said Fed Chair Powell at the Sintra Forum. He will speak again on Thursday during European hours in Madrid at a conference on Financial Stability. No surprise are expected to emerge. Regarding economic data, the US will release the weekly Jobless Claims, a new reading of Q1 GDP, and Pending Home Sales.

On Wednesday, US stocks finished mixed, while US Treasury yields declined in line with global bonds, despite signals from central bankers that more rate hikes are likely. Gold initially printed new lows near $1,900, but then trimmed losses. Crude oil prices rebounded, with the WTI barrel dropping to test monthly lows near $67.00 before starting to recover and ending the day with a gain of 2.20%.

The US Dollar Index rose 0.35%, boosted by Fed rate hike expectations and finishing near 103.00, the highest daily close in two weeks. Ahead of the end of the month and the quarter, trade flows could trigger volatility.

EUR/USD briefly traded under 1.0900 but then rebounded to 1.0920. Despite falling versus the US Dollar, the Euro was among the top performers. EUR/GBP jumped to 0.8655, the highest level in a month. GBP/USD lost more than a hundred pips, stabilizing above 1.2600. 

USD/JPY continued to climb and reached a fresh multi-month high above 144.50. BoJ's Ueda offered no signs of a pivot. Data from Japan to be released on Thursday includes retail sales and Consumer Confidence.

The Aussie tumbled after Australian CPI declined in May to 5.6%, the lowest level in 13 months, from 6.8%, below the market expectation of 6.1%. These numbers increased bets that the Reserve Bank of Australia (RBA) will keep rates unchanged at next week's meeting. On Thursday, Australia will report retail sales. AUD/USD is testing levels under 0.6600 and remains under pressure.

NZD/USD suffered its worst daily decline in weeks, breaking below 0.6100. The Kiwi lagged, with AUD/NZD rebounding from weekly lows toward 1.0900. The ANZ Business Survey is due on Thursday.

USD/CAD rose for the second day in a row, climbing to the highest level in two weeks above 1.3250. The Loonie remains under pressure after the softer-than-expected inflation reading on Tuesday.