Forex Today: Investors look ahead to US NFP report
Here is what you need to know for Friday, June 5:
The US Dollar Index (DXY) fell toward 99.18 early Thursday before steadily climbing during the North American session to 99.45 as investors digested comments from a series of Federal Reserve (Fed) officials ahead of the highly anticipated Nonfarm Payrolls report on Friday. San Francisco Fed President Mary Daly said policy is in a good place and emphasized that getting inflation back to target remains the Fed's top priority.
Meanwhile, Kansas City Fed President Jeffrey Schmid warned that inflation is still too high and suggested the central bank may need to consider whether higher rates are necessary if price pressure persists. After these hawkish remarks, the Greenback gradually gained as Thursday wore on.
EUR/USD closed out the North American session up 0.1% near 1.1610 as traders continue to monitor the Eurozone growth outlook and await fresh US labor market data for additional direction.
GBP/USD trades around the 1.3420 region, struggling to gain momentum against the Greenback.
USD/JPY declined slightly near the 160.00 zone, right at the intervention level where the Bank of Japan (BoJ) has intervened in the past.
AUD/USD hovers near the 0.7130 price region as the Australian Dollar (AUD) found some support after Reserve Bank of Australia (RBA) Governor Michele Bullock reiterated the central bank's commitment to returning inflation to target, but gains were limited as the Greenback remained supported by resilient US economic data and a stable labor market.
West Texas Intermediate (WTI) Oil trades on the back foot at $93.20 per barrel, even as reports suggest diplomatic efforts are ongoing, though significant obstacles persist following Hezbollah's rejection of a US-backed ceasefire proposal, and questions remain over the terms of a broader agreement with Tehran.
Gold rose near the $4,480 level, supported by ongoing uncertainty over the economic outlook, the Middle East conflict, and inflation.
What’s next in the docket:
Friday, June 5:
- Eurozone GDP
- Eurozone Employment Change
- CA Employment Report
- CA Average Hourly Wages
- CA Unemployment Rate
- US Nonfarm Payrolls
- US Unemployment Rate
- US Average Hourly Earnings
- US Labor Force Participation Rate
- CA Ivey PMI
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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