Forex Today: Traders focus to US-China talks, UK jobs report
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
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
