Forex Today: US Payrolls and rate cut expectations will be in the spotlight
|Prudence ahead of the publication of the US labour market report dominated investors’ sentiment on Thursday, leaving price action in the FX universe largely muted. Meanwhile, the ECB reduced its interest rates by 25 bps, as widely anticipated.
Here is what you need to know on Friday, June 7:
The USD Index (DXY) traded on the defensive near the 104.00 region ahead of key US data due on Friday. In fact, the release of Nonfarm Payrolls and the Unemployment Rate will be at the centre of the debate on June 7, seconded by Wholesale Inventories.
EUR/USD regained traction and approached the 1.0900 zone after the cautious cut from the ECB at its event on Thursday. Germany’s Balance of Trade results are due on June 7 along with another estimate of Q1 GDP Growth Rate in the broader Euroland and a speech by the ECB’s Lagarde.
GBP/USD added to Wednesday’s uptick and traded at shouting distance from the key 1.2800 hurdle. June 7 will only see the release of the Halifax House Price Index.
USD/JPY partially faded Wednesday’s firm performance on the back of the weaker dollar and pale US yields. Household Spending, the preliminary Coincident Index and the Leading Economic Index will be unveiled on June 7.
AUD/USD regained its smile and left behind two straight sessions of losses, retesting two-day highs near 0.6680. The Australian docket will be empty on June 7.
Rising optimism among traders pushed WTI prices to three-day peaks near the $76.00 mark per barrel on the back of the ECB rate cut and positive comments from OPEC+ officials, who left the door open to a modification of the latest agreement.
Gold prices advanced to two-week highs near $2,380 per troy ounce following the softer dollar, marginal moves in US yields, and expectations of rate cuts by the Fed sooner than anticipated. Silver extended its gains and climbed to four-day tops beyond the $31.00 mark per ounce.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.