What to watch for on Friday, June 3:
The dollar reversed course on Thursday and gave back all of its Wednesday gains and more. Declining government bond yields and tepid US employment data put pressure on the US currency, weighed down later by the positive tone on Wall Street.
Concerns related to economic growth and inflation remain, also after the EU producer price index hit 37.2% in April, above market expectations. Government bonds rose, with yields giving back some of their recent gains.
US indices rose, even despite comments from Federal Reserve Vice Chair Lael Brainard, who said the central bank was unlikely to pause its current cycle of rate hikes amid record inflation. For her part, Loretta Mester, from Cleveland, stated that inflation has not yet peaked and that it is too early to talk about a possible pause in the adjustment path.
EUR/USD is trading near 1.0750, and is not far off its weekly high at 1.0786. GBP/USD is also higher and is trading around 1.2560. Commodity-linked currencies soar. AUD/USD is trading around 0.7250, while USD/CAD is trading around 1.2570.
Gold soars to its highest level in almost a month. It is currently changing hands at around $1,870 a troy ounce. Oil also rose, with WTI trading at $117.10 a barrel. OPEC+ announced that it would increase production by 648,000 barrels per day in July and August, amid disruptions caused by the Russian invasion of Ukraine.
Attention now turns to the US Non-Farm Payrolls report.
Source: Fx Street
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