Forex Today: Focus remains on US jobs data and EMU flash CPI

Pablo Piovano FXStreet

The US Dollar (USD) faced increasing selling pressure in quite a negative start to the new trading week, slipping back to multi-week troughs amid the resurgence of trade concerns and jitters over the health of the US economy.

Here's what to watch on Tuesday, June 3:

The US Dollar Index (DXY) retreated to the sub-99.00 region to reach new seven-week lows amid marginal gains in US yields across the curve and despite fresh risk aversion. The JOLTs Job Openings will be released seconded by Factory Orders. In addition, the Fed’s Logan and Goolsbee are due to speak.

EUR/USD reclaimed once again the 1.1400 barrier and well beyond in response to the intense sell-off in the US Dollar. The preliminary Inflation Rate in the euro area will take centre stage on the domestic calendar followed by the Unemployment Rate in the whole bloc.

GBP/USD rose to four-day highs, revisiting the 1.3560 zone following heightened weakness around the Greenback. In the UK, the final S&P Global Services PMI is due on June 4.

Further appreciation of the Japanese Yen prompted USD/JPY to recede to multi-day lows and retest the mid-142.00s area on Monday. Next on tap in Japan will be the final Jibun Bank Services PMIs on June 4.

AUD/USD rebounded sharply and came just pips short of the key barrier at 0.6500 the figure, hitting fresh five-day highs. The RBA will publish its Minutes from its May gathering, along with Business Inventories and Q1 Current Account results.

WTI prices jumped to fresh two-week highs near the $64.00 mark following news that the OPEC+ kept output hikes unchanged, rising its production by the expected 411 kbpd in July.

Geopolitics and trade uncertainty lent extra wings to Gold, sending the precious metal to new four-week peaks near $3,380 mark per troy ounce. Silver prices rallied well north of the $34.00 mark per ounce for the first time since October 2024.

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.

GBP/USD: Daily gains remain capped by 1.3650

GBP/USD leaves behind Monday’s pessimism and advances marginally on Tuesday. Cable’s humble gains, however, appear to have met quite a decent resistance in the 1.3650 zone for now, in a context of a slight selling pressure hovering around the Greenback.

EUR/USD struggles to regain pace; gyrates around 1.1670

EUR/USD clinches humble gains around 1.1670 following Tuesday’s close on Wall Street. Indeed, marginal losses in the US Dollar encourages spot to set aside two dauly pullbacks in a row and maintain the 1.1700 barrier on the cross-hairs for now. Moving forward, US inflation tracked by the PCE and another revision of Q2 GDP data should keep investors entertained on Wednesday.

Gold: Buyers still hold the grip

Gold navigates the middle of its daily range near $4,650 per troy ounce on Tuesday. The lack of clear direction in the yellow metal comes on the back of the widespread cautious tone among market participants, a mildly offered stance in the US Dollar and a marked decline in US Treasury yields across the curve.

Australia CPI expected to show inflation easing in July

The Australian Bureau of Statistics (ABS) will publish the July Consumer Price Index (CPI) on Wednesday at 01:30 GMT. The report is expected to show that inflation rose 3.2% from a year earlier, easing from the 3.8% posted in June. The monthly CPI, however, is forecast at 0.8% following the -0.1% print from the previous month.

Canada hits US goods with tariffs; The rate market sees a problem

On September 8, Canada begins charging its own importers 15%, 25% and 50% on roughly 700 lines of American goods. The measure is billed as dollar for dollar, and on the arithmetic of covered trade it is. What it is not is a tax on the United States.