The robust prints from US Nonfarm Payrolls for the month of May helped the Greenback end the week with a humble advance against the backdrop of alternating trends of rate-cut bets by the Fed, all ahead of the release of key US inflation data and the FOMC event.
The US Dollar managed to bounce off earlier two-month lows in the 104.00 neighbourhood in response to strong NFP results, the jump in US yields across the curve, as well as further repricing of rate cuts in Q4. The following week will see the publication of the US Inflation Rate on June 12, along with the FOMC gathering and the usual press conference by Chair J. Powell. On June 13, Producer Prices are due along with weekly Initial Jobless Claims. The advanced Michigan Consumer Sentiment gauge is only due on June 14.
Despite the move to the area beyond 1.0900 the figure, EUR/USD ended the week on the back foot, extending at the same time its consolidative bias in place since mid-May. The Sentix Index is due on June 12. Later, final Inflation Rate in Germany is expected on June 12, while Industrial Production in the broader Euroland comes on June 13. The EMU’s Balance of Trade will close the weekly docket on June 14.
Another failure to break above the 1.2800 barrier in a sustainable fashion left GBP/USD with marginal losses on the weekly chart. The UK labour market report will be unveiled on June 11. Next on tap will be the GDP figures, Balance of Trade, Construction Output, Industrial and Manufacturing Production, all due on June 12.
In spite of the sharp post-NFP U-turn, USD/JPY ended the week with a modest retracement near the 157.00 region, reversing two consecutive weeks of gains. The final Q1 GDP Growth Annualized is due on June 10, along with Bank Lending figures and the Eco Watchers Survey. Producer Prices in Japan come on June 12, seconded by the BSI Large Manufacturing gauge and the usual weekly Foreign Bond Investment figures on June 13. On June 14, the BoJ will decide on its interest rates, seconded by the Tertiary Industry Index and final Industrial Production results.
AUD/USD collapsed to multi-session lows in response to the change of heart around the Greenback on Friday, leaving the Aussie dollar with modest losses on a monthly basis. The release of the Australian labour market report takes centre stage on June 13, seconded by the Consumer Confidence Index tracked by Westpac. On June 14, Consumer Inflation Expectations will be released.
Anticipating Economic Perspectives: Voices on the Horizon
- ECB’s Nagel will speak on June 10
- BoC’s Macklem and ECB’s Nagel.
- Fed’s J. Williams, and BoC’s Kozicky speak on June 13
- Fed’s A. Goolsbee and ECB’s Lagarde are due to speak on June 14
Central Banks: Upcoming Meetings to Shape Monetary Policies
- The Fed is expected to keep rates unchanged on June 12.
- The BoT will decide on rates on June 12.
- The BoJ meets on June 14.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.