Forex Today: More dollar losses ahead

FXStreet Team FXStreet

What you need to know on Tuesday, May 2nd:

The American dollar was the worst performer, as tension mounts in the US after the death of a civilian in the hands of a police officer last week. Several states imposed curfews to halt protesters but got the opposite result, with riots extending throughout the country over the weekend. New York announced a curfew for Monday’s night as more unrest is expected.

The EUR/USD pair hit 1.1153, retreating from the level as local data showed economic contraction persisted in May. Investors remained cautious ahead of the ECB monetary policy decision and the US Nonfarm Payroll report, both scheduled later on this week.

In the UK, the focus remains on the post-Brexit relationship between the UK and the EU. UK PM’s spokesman said that the EU’s demands are “unprecedented” and that the Union needs to change its position. The EU and the UK will have another round of talks this week to try to reach a post-Brexit trade agreement. EU officers doubt the kingdom actually desires an agreement.

The GBP/USD pair rallied to 1.2506, the AUD/USD pair flirted with 0.6800 while USD/CAD plunged to 1.3570, on the back of dollar’s sell-off. USD/JPY remained mute within familiar levels below 108.00.

Gold established around 1,740.00, up for the day. A weaker dollar kept it afloat, although the positive tone of equities limited its bullish potential.

Crude oil prices remained at the upper end of May’s range, recovering modest losses at the end of the day amid headlines indicating that Saudi Arabia is likely to increase the price for its oil bound for Asia in July.

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EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.