Forex Today: US Dollar consolidates gains ahead of high-tier US data releases

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

The US Dollar Index edges lower but manages to hold above 103.00 after having closed in the positive territory for three straight days. The market mood remains cautious early Thursday, with US stock index futures trading in the red. ADP Employment Change for June, weekly Initial Jobless Claims and JOLTS Job Openings data for May will be featured in the US economic docket. The ISM will release the June Services PMI survey as well.

The Federal Open Market Committee (FOMC) released the minutes of its June meeting late Wednesday. The publication revealed that some officials favoured a 25 basis points (bps) rate hike. “Almost all participants noted that in their economic projections that they judged that additional increases in the target federal funds rate during 2023 would be appropriate," the Fed said, reaffirming the hawkish dot plot.

Wall Street's main indexes registered small losses on Wednesday, while the benchmark 10-year US Treasury bond yield climbed to its highest level since March, above 3.9%.

EUR/USD fell to a fresh three-week-low below 1.0840 early Thursday before recovering above 1.0860 in the European morning. The data from Germany revealed that Factory Orders rose 6.4% on a monthly basis in May following the 0.4% contraction recorded in April. This reading surpassed the market expectation for a 1.5% growth by a wide margin. Eurostat will publish May Retail Sales data later in the session.

Despite the broad US Dollar strength, GBP/USD stayed in a tight range on Wednesday. In the early European session, the pair continues to move sideways, slightly above 1.2700.

Following Wednesday's choppy action, USD/JPY came under renewed bearish pressure and dropped below 144.00. 

Gold price climbed to a 10-day high of $1,935 on Wednesday but turned south when US yields surged higher. XAU/USD edges higher early Thursday and trades near $1,920.

USD/CAD gathered bullish momentum and rose above 1.3300 for the first time since mid-June early Thursday. Statistics Canada will release International Merchandise Trade data for May.

Bitcoin broke below $31,000 and closed in the negative territory for the second straight day on Wednesday. BTC/USD stages a rebound and trades above $30,500 in the European morning. Ethereum lost more than 1% on Wednesday and dropped below $1,900 before recovering back above that level early Thursday.