Forex Today: Dollar down but not yet defeated
|What you need to take care of on Friday, June 3:
The greenback changed course on Thursday and gave up all of its Wednesday gains and more. Easing government bond yields and tepid US employment-related figures put pressure on the American currency, later weighed by the positive tone of Wall Street.
Concerns related to economic growth and inflation remain the same, moreover after the EU Producer Price Index hit 37.2% in April, above the market’s expectations. Government bonds were up, with yields giving up some of their recent gains.
US indexes edged higher, even despite comments from Federal Reserve Vice-Chair Lael Brainard said that the central bank would hardly pause its current rate-hiking cycle amid record inflation levels. Cleveland Loretta Mester said that inflation has not yet peaked and that it’s too early to discuss a potential pause in the tightening path.
The EUR/USD pair trades near 1.0750, and not far from its weekly high at 1.0786. The GBP/USD pair is also up, trading at around 1.2560. Commodity-linked currencies soared. The AUD/USD pair is now hovering at around 0.7250, while USD/CAD trades at around 1.2570.
Gold soared, trading at its highest in near a month. It is currently changing hands at around $1,870 a troy ounce. Crude oil prices were also up, with WTI trading at $117.10 a barrel. The OPEC+ announce it would increase production by 648,000 barrels per day in July and August amid disruptions caused by Russia’s invasion of Ukraine.
The focus is now on the US Nonfarm Payrolls report.
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