The US Dollar (USD) experienced significant losses in the American session on Monday but managed to hold steady against its major rivals early Tuesday. The upcoming economic docket includes April Factory Orders and JOLTS Job Openings data, which will provide further insights into the US economy.
The ISM Manufacturing PMI for May dropped to 48.7 from 49.2 in April, indicating a continued contraction in the manufacturing sector. The Prices Paid Index also decreased to 57 from 60.9, signaling softer input inflation. These data points caused the USD Index to decline sharply, reaching its lowest level since early April. The benchmark 10-year US Treasury bond yield remained near 4.4% after falling nearly 2.5% on Monday. US stock index futures traded slightly lower on Tuesday.
JOLTS Job Openings is a survey conducted by the US Bureau of Labor Statistics to measure job vacancies. This data is collected from various employers each month, including retailers, manufacturers, and different offices. It provides valuable insights into the job market and overall economic health.
Bank of Japan (BoJ) Governor Kazuo Ueda stated that they would adjust monetary support levels based on underlying inflation trends. Meanwhile, Japanese Finance Minister Shunichi Suzuki mentioned that forex intervention was aimed at combating speculative moves and had some impact. USD/JPY remained stable around 156.00 on Tuesday.
EUR/USD saw bullish momentum, reaching its highest level since late March above 1.0910. The pair consolidated near 1.0900 early Tuesday. GBP/USD also benefited from USD weakness, climbing to the 1.2800 level.
Gold experienced a reversal in direction on Monday, surpassing $2,350 and rising over 1% for the day. XAU/USD underwent a technical correction and traded around the mid-$2,340s in the European session. Investors continue to monitor market trends and economic data for potential trading opportunities.
Overall, the US Dollar remains under pressure following weak economic data, while other major currencies like the Euro and British Pound show signs of resilience. Precious metals like Gold also attract investor interest amid market uncertainties. With ongoing developments in global economies, traders should stay informed and adapt their strategies accordingly.
