Forex Today: Markets’ attention shifts to the ECB

The Greenback extended its weekly recovery and added to Tuesday’s advance despite the mixed tone of US yields across the curve, as investors started to price in two interest rate cuts by the Fed this year. Meanwhile, traders fully anticipate a 25 bps rate reduction by the ECB on Thursday.

Here is what you need to know on Thursday, June 6:

The USD Index (DXY) maintained its bullish stance in place and retested the 200-day SMA in the 104.40 area. On June 6, Balance of Trade results are due seconded by the usual weekly Initial Jobless Claims.

Further gains in the US Dollar kept the EUR/USD’s price action subdued ahead of the ECB gathering. The ECB’s interest rate decision and the subsequent press conference by President C. Lagarde take centre stage on June 6. Additionally, Retail Sales in the broader euro bloc are also due.

GBP/USD resumed its uptrend and managed to advance modestly despite the firm tone in the Greenback. The S&P Global Construction PMI is expected on June 6.

USD/JPY left behind two sessions in a row of losses and sparked a marked rebound past the 156.00 barrier. The weekly Foreign Bond Investment figures are due on June 6 seconded by the speech by BoJ’s Nakamura.

AUD/USD trimmed earlier losses, although it ended the session slightly on the defensive near 0.6640. On June 6, the Balance of Trade comes first ahead of Home Loans and Investment Lending for Homes.

Quite a decent rebound saw WTI prices partially set aside a multi-session bearish trend and reclaim the $74.00 mark per barrel despite the weekly build in US inventories and unabated demand jitters.

Gold prices kept its side-lined trade in place, reversing Tuesday’s pullback and climbing to the $2,350 area per troy ounce helped by diminishing US yields. Silver, in addition, reversed part of the steep pullback recorded in the previous session and flirted once again with the key $30.00 mark per ounce.