Forex Today: Traders focus to US-China talks, UK jobs report

Christian Borjon Valencia FXStreet

The US Dollar dropped as US-Sino trade talks began in London on Monday, amid an improvement in risk appetite and the first reports that talks are going well, according to US President Donald Trump. US equities are trading mixed, US Treasury bond yields down, as traders brace for the release of UK jobs data, ECB Survey of Monetary Analysis, and ECB speakers.

Here's what to watch on Tuesday, June 10:

The US Dollar Index (DXY) retreated after posting solid gains last Friday, but it has fallen below the 99.00 level, poised to end the day down 0.28%. Last week’s Nonfarm Payrolls figures were solid despite the ongoing slowdown. Still, the data, along with the latest Atlanta Fed GDP Now, suggests a rebound in Q2 2025 is expected, following the contraction in the first quarter. Data-wise, Tuesday’s schedule will feature the US NFIB Optimism Index amid the Fed speaker's absence due to the blackout period ahead of the June 17-18 meeting.

EUR/USD rose past 1.1420 on the ECB’s speakers turning hawkish, particularly Peter Kazimir, who commented that the central bank is near, if not already at, the end of its easing cycle. This, and ECB’s Schnabel adding that the central bank might not decouple from the Fed, provided a tailwind for the shared currency. The docket will feature the ECB Survey of Monetary Analysis, ECB Speakers, and the Sentix Index.

GBP/USD continues to climb, regaining 1.3500 as overall US Dollar weakness persists amid a sparse economic calendar. Market players are focused on the release of April’s Employment Change, the ILO Unemployment Rate, on Tuesday. On Wednesday, traders will eye the release of Britain’s government spending plans.

The USD/JPY prints modest losses after the Japanese Yen appreciated as Gross Domestic Product (GDP) figures showed an improvement, despite remaining in contractionary territory, at -0.2% YoY, from the -0.7% plunge from the previous print. However, Japanese PM Ishimba saying that the economy is facing a phase of higher prices suggests that the Bank of Japan tightening cycle could continue to underpin the Yen.

Both antipodean currencies, the AUD/USD and the NZD/USD, advanced to fresh two-day highs. The Aussie Dollar rose by 0.41% to 0.6515, with market players eyeing the release of Consumer Sentiment data and Business Confidence. The kiwi gained 0.61% at 0.6046 due to US Dollar weakness, across the board along with an improvement on Manufacturing Sales.

Gold prices rose as bulls bought the dip below $3,300, while US Treasury bond yields and the US dollar fell. Nevertheless, a positive outcome of the US-China talks could send XAU/USD into a tailspin as flows move toward riskier assets.

US Dollar PRICE This week

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

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.21%	-0.18%	-0.17%	0.02%	-0.31%	-0.52%	-0.02%
EUR	0.21%		0.02%	0.03%	0.22%	-0.08%	-0.32%	0.18%
GBP	0.18%	-0.02%		0.08%	0.20%	-0.09%	-0.34%	0.16%
JPY	0.17%	-0.03%	-0.08%		0.20%	-0.19%	-0.39%	0.03%
CAD	-0.02%	-0.22%	-0.20%	-0.20%		-0.35%	-0.54%	-0.04%
AUD	0.31%	0.08%	0.09%	0.19%	0.35%		-0.24%	0.26%
NZD	0.52%	0.32%	0.34%	0.39%	0.54%	0.24%		0.50%
CHF	0.02%	-0.18%	-0.16%	-0.03%	0.04%	-0.26%	-0.50%

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).

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.