FOREX TODAY: THE DOLLAR POSSIBLY MIGHT STRENGTHEN AHEAD OF THE US CPI

New Zealand will present its figures during Tuesday's Asian session. Both the NAB Business Survey for May and the June Westpac Australian Consumer Confidence Index are due. The US Consumer Price Index, which will provide important information prior to Wednesday's FOMC decision, will be the day's main event.

What you should be aware of on Tuesday, June 13 is as follows:

Ahead of important data and events, stocks started the week on a strong note. Markets seem to be jubilant, that the Federal Reserve (Fed) may stop raising interest rates. It will monitor new economic data.

The Nasdaq increased 1.53% while the Dow Jones rose 0.56%. US Treasury yields retreated during the American session.

Tuesday marks the start of the two-day Federal Reserve meeting. The central bank put interest rates on hold on Wednesday, although another 25 basis points may still be conceivable. The US Consumer Price Index (CPI), which is be out on Tuesday, is forecast to have increased by 0.2% in May and 4.1% from a year ago, down from 4.9%; the Core CPI have increased by 0.4% in the month and 5.3% from a year ago, up from 5.5% in April.

On Monday, the US Dollar Index increased slightly and closed above 103.50. It is still above the 103.30 support but moving in an unclear manner.

The EUR/USD pair reached new weekly highs before declining approximately 1.0750. Ahead of the European Central Bank (ECB) meeting on Thursday, the pair is ranging while anticipating new data. The official Consumer Price Index reading for May will be released on Tuesday in Germany and Spain. Also forthcoming is the June ZEW Survey for Germany and the Eurozone.

Sharp declines in GBP/USD brought a stop to a three-day winning streak. Over 1.2500 was reached during US business hours. Despite hawkish remarks from Bank of England (BoE) officials, the Pound weakened. The EUR/GBP pair enjoyed its best day in weeks, rising to 0.8600 from monthly lows. On Tuesday, the UK will present its employment statistics. In the three months ending in May, it would increase from 3.9% to 4%. BoE Bailey gives a House of Lords testimony.

As it has been doing since the start of the month, USD/JPY kept bouncing around 139.50. The present range between 138.50 and 140.00 will be tested because of upcoming meetings between the Fed and the Bank of Japan.

The Australian dollar outperformed, as AUD/USD increased for the third day in a row, achieving the highest daily close in a month at 0.6750. On Tuesday, the National Australia Bank Monthly Business Survey (May) and the Westpac-Melbourne Institute Consumer Sentiment (June) are also due.

The 200-day Simple Moving Average (SMA) around 0.6120 is acting as resistance for the NZD/USD currency pair. Although the pair is trending upward, some weariness indications are there. The next move will probably depend on the USD. The deadline for New Zealand migration figures is Tuesday.

From the significant support area above 1.3300, USD/CAD rose to 1.3385/90. The Loonie needs to break below 1.3300 to open the door to more increases, but the bias is to the downside. The Canadian Dollar was weaker on Monday due to the 4% drop in crude oil prices.

On Monday, gold found support at $1,950 and recovered some of its losses to reach $1,960. Silver closed at about $24.00, down 0.95%. The performance of cryptocurrencies was uneven, with Bitcoin losing 1% and dropping under $36,000.