Here is what you need to know on Friday, June 2:
The US Dollar (USD) stays on the back foot early Friday after having suffered heavy losses against its major rivals on Thursday with the US Dollar Index trading below 103.50 in the European morning. The market mood remains relatively upbeat as focus shifts to the US Bureau of Labor Statistics' (BLS) May jobs report, which will include Nonfarm Payrolls (NFP) and wage inflation figures.
US Nonfarm Payrolls Report: Analyzing May NFP release.
On Thursday, the USD came under heavy bearish pressure after the BLS reported that the change in Unit Labor Costs for the first quarter got revised significantly lower to 4.2% from the advanced estimate of 6.3%. Moreover, Automatic Data Processing's (ADP) monthly report revealed that private sector employment in the US rose by 278,000 in May. Although this reading surpassed the market forecast of 170,000 by a wide margin, the soft wage inflation component of the report didn't allow the USD to gather strength. According to the CME Group FedWatch Tool, markets are pricing in a left than 30% probability of one more Federal Reserve rate hike at the upcoming meeting.
Meanwhile, the US Senate voted to pass the bill to suspend the debt-limit. Commenting on this development, “this bipartisan agreement is a big win for our economy,” said US President Joe Biden and told reporters that he will sign this bill into law as soon as Friday. Reflecting the risk-positive market atmosphere, main equity indexes in the US closed decisively higher on Thursday. Early Friday, US stock index futures continue to trade in the green in the early European session.
EUR/USD registered impressive gains on Thursday and erased all of its weekly losses. The pair continues to stretch higher and holds above 1.0750 in the European morning.
GBP/USD took advantage of the persistent USD weakness and rose to its highest level in two weeks above 1.2500 on Thursday. The pair clings to small daily gains near 1.2550 early Friday.
USD/JPY extended its slide into a fourth straight day on Thursday and broke below 139.00. The pair edges slightly higher but stays below that level on the last trading day of the week.
Gold price continued to push higher on Thursday as the benchmark 10-year US Treasury bond yield fell below 3.6% for the first time in nearly three weeks. XAU/USD consolidates its weekly gains at around $1,980.
US May Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises.
Bitcoin has gained traction and recovered above $27,000 from the weekly low it set near $26,500 in the Asian trading hours on Friday. Following a two-day slide, Ethereum has staged a rebound and was last seen rising more than 1% on a daily basis at around $1,900.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0800 after upbeat US data
EUR/USD stays under bearish pressure and trades slightly below 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold clings to strong daily gains above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.