The month of June is officially underway and with it comes the official start of summer (in the Northern Hemisphere – apologies to my Australian friends!).
When it comes to the forex market, June has historically been a slower month, with EUR/USD limited to just a 200 pip top-to-bottom range last June, and many traders fear that these slow trading conditions will repeat this year. Whatever this month brings, the action-packed economic calendar in the G10 should keep traders pinned to their seats for this week at least.
The EM economic calendar is less eventful, though there still are a couple of key releases for traders to keep an eye on including interest rate decisions in Mexico (expected to remain on hold at 3.0%), India (expected to cut 25bps cut), and Brazil (expected to hike 50bps), as well as CPI data out of Turkey and Russia.
Speaking of Russia, the ruble has fallen to a 6-week low against the U.S. dollar today. The current drop in ruble (rally in USD/RUB) has been driven by four main factors.