|

Forex Today: Investors look ahead to US NFP report

Here is what you need to know for Friday, June 5:

The US Dollar Index (DXY) fell toward 99.18 early Thursday before steadily climbing during the North American session to 99.45 as investors digested comments from a series of Federal Reserve (Fed) officials ahead of the highly anticipated Nonfarm Payrolls report on Friday. San Francisco Fed President Mary Daly said policy is in a good place and emphasized that getting inflation back to target remains the Fed's top priority.

Meanwhile, Kansas City Fed President Jeffrey Schmid warned that inflation is still too high and suggested the central bank may need to consider whether higher rates are necessary if price pressure persists. After these hawkish remarks, the Greenback gradually gained as Thursday wore on.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.12%-0.04%-0.05%0.07%-0.07%-0.05%-0.34%
EUR0.12%0.06%0.07%0.19%0.03%-0.03%-0.22%
GBP0.04%-0.06%0.02%0.13%-0.03%-0.10%-0.30%
JPY0.05%-0.07%-0.02%0.11%-0.03%-0.10%-0.30%
CAD-0.07%-0.19%-0.13%-0.11%-0.14%-0.21%-0.41%
AUD0.07%-0.03%0.03%0.03%0.14%-0.05%-0.24%
NZD0.05%0.03%0.10%0.10%0.21%0.05%-0.21%
CHF0.34%0.22%0.30%0.30%0.41%0.24%0.21%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

EUR/USD closed out the North American session up 0.1% near 1.1610 as traders continue to monitor the Eurozone growth outlook and await fresh US labor market data for additional direction.

GBP/USD trades around the 1.3420 region, struggling to gain momentum against the Greenback.

USD/JPY declined slightly near the 160.00 zone, right at the intervention level where the Bank of Japan (BoJ) has intervened in the past.

AUD/USD hovers near the 0.7130 price region as the Australian Dollar (AUD) found some support after Reserve Bank of Australia (RBA) Governor Michele Bullock reiterated the central bank's commitment to returning inflation to target, but gains were limited as the Greenback remained supported by resilient US economic data and a stable labor market.

West Texas Intermediate (WTI) Oil trades on the back foot at $93.20 per barrel, even as reports suggest diplomatic efforts are ongoing, though significant obstacles persist following Hezbollah's rejection of a US-backed ceasefire proposal, and questions remain over the terms of a broader agreement with Tehran.

Gold rose near the $4,480 level, supported by ongoing uncertainty over the economic outlook, the Middle East conflict, and inflation.

What’s next in the docket:

Friday, June 5:

  • Eurozone GDP
  • Eurozone Employment Change
  • CA Employment Report
  • CA Average Hourly Wages
  • CA Unemployment Rate
  • US Nonfarm Payrolls
  • US Unemployment Rate
  • US Average Hourly Earnings
  • US Labor Force Participation Rate
  • CA Ivey PMI

WTI Oil FAQs

WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.

Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.

The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.

OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.

Author

Agustin Wazne

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

More from Agustin Wazne
Share:

Editor's Picks

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold bulls seem hesitant below $4,500 amid modest USD bounce ahead of US NFP

Gold remains on the defensive below the $4,500 mark through the Asian session, snapping a two-day winning streak amid a modest US Dollar uptick. The commodity, however, remains close to the weekly high, which it touched the previous day, as traders keenly await the release of the closely watched US monthly employment details. The popularly known US Nonfarm Payrolls (NFP) report will provide more cues about the Fed's policy path amid receding bets of a September rate hike.

Bitcoin clears $80,000 on reduced rate hike odds – Zcash, Ethena rise

Bitcoin is trading above $80,000 on Friday, sustaining the broader cryptocurrency market's risk-on sentiment. Federal Reserve (Fed) Governor Christopher Waller signaled support for a potential pause in interest rates on Thursday, lowering the odds of a September rate hike to 50%. Zcash (ZEC) and Ethena (ENA) emerge as top performers over the last 24 hours.

NFP preview: Can jobs data ease rate hike fears?

As we move to the end of the week, the focus shifts to the macro data, and to the strength of the labour market in the US. August payrolls are released on Friday at 1330 BST, and the market is expecting a reading of 58k. The unemployment rate is expected to remain steady at 4.1% and wage growth is expected to moderate slightly to 3% last month, down from 3.2%.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.