The Greenback was able to recover some of its recent losses as investors speculated on a potential interest rate cut by the Fed in November. While this helped boost the USD Index (DXY) slightly, it still remained near two-month lows. Key upcoming US data releases, including MBA’s Mortgage Applications, ADP Employment Change, S&P Global Services PMI, and ISM Services PMI, will offer further insights into the state of the economy on June 5.
EUR/USD saw some downward pressure after reaching highs in the 1.0915-1.0920 range, with the final HCOB Services PMI in Germany and the broader Euroland also expected on June 5. Similarly, GBP/USD faced selling pressure despite hitting new highs above 1.2800, with the final S&P Global Services PMI scheduled for release on the same day.
In the currency markets, USD/JPY dropped to three-week lows as US yields continued to retract and comments from a BoJ official further boosted the Japanese currency. Meanwhile, AUD/USD reversed its recent gains and revisited the 0.6630 zone due to a stronger Dollar and bearish sentiment in the commodity complex. On June 5, the Ai Group Industry Index, final Judo Bank Services PMI, and GDP Growth Rate Q1 will provide more information on the Australian economy.
WTI prices plummeted by around 5% and fell below $73.00 per barrel as traders weighed the outcome of the latest OPEC+ meeting and concerns about the global demand for oil. Meanwhile, Gold prices remained range-bound amidst a slight increase in the Dollar and weakening yields, while Silver also fell to three-week lows after breaking below the crucial $30.00 mark per ounce.
In summary, the Greenback managed to bounce back after hitting multi-week lows, driven by speculation of a potential interest rate cut by the Fed. As key US data releases approach, investors are closely monitoring the economic indicators that will shed more light on the state of the economy. Additionally, movements in currency pairs like EUR/USD, GBP/USD, USD/JPY, and AUD/USD are influenced by various factors such as yield levels and international developments. The commodity market, particularly oil and precious metals like Gold and Silver, is also experiencing volatility due to global demand concerns and fluctuations in the Dollar.
