The US Dollar (USD) faced increasing selling pressure in quite a negative start to the new trading week, slipping back to multi-week troughs amid the resurgence of trade concerns and jitters over the health of the US economy.
Here’s what to watch on Tuesday, June 3:
The US Dollar Index (DXY) retreated to the sub-99.00 region to reach new seven-week lows amid marginal gains in US yields across the curve and despite fresh risk aversion. The JOLTs Job Openings will be released seconded by Factory Orders. In addition, the Fed’s Logan and Goolsbee are due to speak.
EUR/USD reclaimed once again the 1.1400 barrier and well beyond in response to the intense sell-off in the US Dollar. The preliminary Inflation Rate in the euro area will take centre stage on the domestic calendar followed by the Unemployment Rate in the whole bloc.
GBP/USD rose to four-day highs, revisiting the 1.3560 zone following heightened weakness around the Greenback. In the UK, the final S&P Global Services PMI is due on June 4.
Further appreciation of the Japanese Yen prompted USD/JPY to recede to multi-day lows and retest the mid-142.00s area on Monday. Next on tap in Japan will be the final Jibun Bank Services PMIs on June 4.
AUD/USD rebounded sharply and came just pips short of the key barrier at 0.6500 the figure, hitting fresh five-day highs. The RBA will publish its Minutes from its May gathering, along with Business Inventories and Q1 Current Account results.
WTI prices jumped to fresh two-week highs near the $64.00 mark following news that the OPEC+ kept output hikes unchanged, rising its production by the expected 411 kbpd in July.
Geopolitics and trade uncertainty lent extra wings to Gold, sending the precious metal to new four-week peaks near $3,380 mark per troy ounce. Silver prices rallied well north of the $34.00 mark per ounce for the first time since October 2024.