Forex Today: Powell takes centre stage amid escalating Middle East jitters

The Greenback regained strong downside traction and dropped to four-day lows in response to dovish Fedspeak and despite solid safe-haven demand in light of the deterioration of the geopolitical landscape in the Middle East. Meanwhile, investors geared up for Chair Powell's semiannual testimonies and the release of the always-relevant US Consumer Confidence.

Here's what to watch on Tuesday, June 24:

The US Dollar Index (DXY) retreated for the third consecutive day, receding to the 98.40 zone amid a generalised pullback in US yields. Chief Powell will testify before the US House Financial Services Committee, seconded by speeches from Hammack, Collins and Barr. On the docket, the Conference Board's Consumer Confidence gauge will be in the spotlight, followed by the FHFA's House Price Index, the Richmond Fed Manufacturing Index and the API's weekly report on US crude oil stockpiles.

EUR/USD advanced to four-day peaks amid an intense risk-off sentiment and renewed weakness in the Greenback. The German IFO Business Climate will be the salient event on the domestic calendar, alongside speeches by the ECB's De Guindos, Lagarde and Lane.

GBP/USD dipped to three-week lows near 1.3370 before staging a sharp rebound to multi-day tops near 1.3530 on the back of the resurgence of the strong selling bias in the US Dollar. The CBI Industrial Trends Orders is due seconded by speeches by the BoE's Bailey, Ramsden, Greene, and Breeden.

USD/JPY rose sharply and hit new six-week highs just above the 148.00 barrier, just to come all the way down and settle near 146.00 following the pronounced retracement in the Greenback. The BoJ Summary of Opinions is due, ahead of the final prints of the Coincident and Leading Economic Indices. In addition, the BoJ's Tamura is due to speak. 

AUD/USD reversed an initial drop to the sub-0.6400 region and managed to retest the 0.6450 zone toward the end of the day. Next on tap in Oz will be the release of the RBA's Monthly CPI Indicator on June 25.

Prices of WTI collapsed more than 7% and receded to the vicinity iof the $68.00 mark per barrel after Iranian retaliatory attacks targeted US military bases in the UAE.

Gold maintains its bullish bias on Monday, trading at shouting distance from the key $3,400 mark per troy ounce on the back of increasing geopolitical tensions after Iran attacked regional US military bases. Silver prices alternated gains with losses in the low $36.00s per ounce.