Forex Today: The Dollar regains some composure ahead of upcoming data

Pablo Piovano FXStreet

The Greenback managed to reverse part of the recent weakness after bottoming out in multi-week lows against the backdrop of rising speculation of an interest rate cut by the Fed in November, while investors get ready for key upcoming US data releases.

Here is what you need to know on Wednesday, June 5:

The USD Index (DXY) advanced slightly after briefly testing two-month lows near 104.00. On June 5, MBA’s Mortgage Applications are due seconded by ADP Employment Change, the final S&P Global Services PMI and the ISM Services PMI.

EUR/USD came under pressure soon after hitting fresh tops in the 1.0915-1.0920 band. The final HCOB Services PMI is due in Germany and the broader Euroland on June 5.

GBP/USD followed the selling pressure in the risk complex and ended with marked losses despite reaching fresh highs north of 1.2800. The final S&P Global Services PMI is expected on June 5.

The continuation of the retracement in US yields plus comments from a BoJ official supported another positive session of the Japanese currency, dragging USD/JPY to three-week lows.

After three consecutive daily advances, AUD/USD succumbed to the uptick in the Dollar and the bearish tone in the commodity complex, revisiting the 0.6630 zone. On June 5, the Ai Group Industry Index comes ahead of the final Judo Bank Services PMI and the GDP Growth Rate Q1.

WTI collapsed around 5% and broke below the $73.00 mark per barrel as traders continued to assess the latest OPEC+ meeting and persistent demand concerns.

Prices of Gold maintained its range bound trade unchanged for yet another session on the back of the small uptick in the Dollar and diminishing yields. Silver also traded on the defensive, deflating to three-week lows after breaching the key $30.00 mark per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD weakens to four-week lows near 1.1750

EUR/USD’s selling pressure is gathering pace now, approaching the area of multi-week troughs in the mid-1.1700s on Thursday. The pair’s intense decline comes on the back of another day of solid gains in the US Dollar, particulalry exacerbated following firm prints from the weekly US labour market.

GBP/USD drops further, hovers around 1.3460

In line with the rest of its risk-linked peers, GBP/USD faces increasing selling pressure and recedes toward the 1.3460 region, or four-week lows, on Thursday. Cable’s persistent pullback comes in response to the continuation of the recovery in the Greenback amid a solid US data and a divided FOMC when it comes to the Fed’s rate path.

Gold clings to daily gains near $5,000

Gold struggles for direction and clings to its daily gains around the key $5,000 mark per troy ounce on Thursday. The precious metal sticks to the bid bias amid reignited geopolitical tensions in the Middle East and despite marked gains in the US Dollar and rising US Treasury yields across the curve.

Ripple slips toward $1.40 despite SG-FORGE tapping protocol for EUR CoinVertible

XRP extends its decline, nearing $1.40 support, as risk appetite fades in the broader market. SG-FORGE’s EUR CoinVertible launches on the XRP Ledger, leveraging the blockchain’s scalability, speed, security, and decentralization.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.