Australia issued its April Home Loan figures during the Asian session. The US Nonfarm Payroll will be the day’s most important report. The US dollar is still under pressure as market sentiment has improved and Fed rate hike expectations have decreased.
You should be aware of the following on Friday, June 2:US stocks increased on Thursday as market mood improved as a result of Chinese data and the conclusion of the debt-limit turmoil. As US yields decreased, the US currency fell everywhere. The US labour market is still strong, but there has been a downturn in inflation and manufacturing activity. The erratic results increased wagers on a Federal Reserve pause at its meeting in June and rate decreases by year’s end.
- US: May’s ISM Manufacturing PMI fell to 46.9 from the anticipated 47.
- US: Unit Labour Costs rose by 4.2% in Q1 versus the anticipated 6% increase
- US: Weekly initial claims for unemployment increased to 232K from 235K predicted
After months of stability, the US Dollar Index dropped to a new monthly low of 103.50. US 10-year yields have fallen for five days in a row, with today’s close marking the lowest level since May 18. The employment report for the month of May is due on Friday, and most economists expect payrolls to have increased by 190,000, down from 253,000 in April. We’ll be keeping a close eye on these figures. If optimism persists, the Dollar may not benefit from even a good report.
Preview of Nonfarm Payrolls: Financial Institutions Anticipate Labour Market Decline to Be Minimal
By rising above 1.0750, the EUR/USD continued its recovery from the month’s lows. Inflation rates in the Eurozone appear to be levelling off. Nonetheless, ECB President Lagarde has signalled that further rate increases are on the horizon.
”Research at Commerzbank has this to say:Food costs, which had increased dramatically, are beginning to level down as a result of the strong drop in energy prices. However, the fact that underlying inflation has likely peaked is of far more importance to the ECB. This lends credence to our belief that June will see the European Central Bank’s final 25 basis point increase to its main interest rate.”
With the Bank of England under pressure to do more to contain inflation in the UK, the pound has been one of the week’s best performing currencies. For four days in a row, the value of the British pound against the US dollar has risen, with today marking the highest daily close since May 10.
Despite a surge in equities on Thursday, fueled by dropping government bond yields, the Japanese yen fared well. The US dollar weakened against the Japanese yen for a third consecutive day, reaching a low of 138.42; thus far this week, the pair has lost 180 pips.As a result of the decline in the value of the US dollar, the Australian Dollar and the New Zealand Dollar both had their best day in weeks, climbing to 0.6570 and 0.6070, respectively. On Friday, the Fair Work Commission (FWC) in Australia will release the results of the Annual Wage Review.
As crude oil prices rose by more than 3 percent, the US dollar fell against the Canadian dollar by more than a hundred basis points (pips). At 1.3435, the pair hit its lowest point in two weeks.
Except for the Turkish lira, which hit new record lows as USD/TRY rose above 20.80, emerging market currencies rose versus the US Dollar.
Despite a weakened US dollar and optimistic market sentiment, cryptocurrencies did not rise in value. Ethereum prices remained stable at roughly $1,870 while Bitcoin dropped to $26,870. Silver climbed to about $24.00, and gold reached its 20-day Simple Moving Average (SMA) near $1,980.
