This is what you need to know to trade today Tuesday June 1:
Investors are cautiously optimistic due to the opening of the UK and US markets, pushing the dollar lower and gold higher. The US Manufacturing ISM and Fed speakers stand out in a busy economic calendar. COVID-19 remains a cause for concern in Asia, but is on the decline in Europe and the United States.
American operators return from the long Memorial Day weekend with a slightly weaker US dollar, despite an increase in Treasury yields. S&P 500 futures are on the rise.
The US ISM Manufacturing Purchasing Managers Index | May serves as the first hint towards the release of the Non-Farm Payrolls on Friday, but the inflation component could have the most significant impact. Fears that the world’s largest economy is overheating weigh on the markets.
ISM Manufacturing PMI Preview: Clue to the NFP? The inflation component can shake the dollar
The governors of the Federal Reserve, Randal Quarles and Lael Brainard, are scheduled to speak later in the day and may indicate possible moves on the bank’s decision later this month. Speculation about the tune-up is mounting on the upbeat economic data.
The dollar retreats against the pound in the middle of the hope that the UK vaccination campaign will intensify. Optimism over immunizations outweighs concerns about the Indian variant of the coronavirus that could delay the June 21 reopening. Bank of England Governor Andrew Bailey will speak later. Speculation about a rate hike in 2021 is predominant.
The EUR/USD It stands above 1.22, benefiting from the weakness of the dollar and expecting that Germany can remove the covid restrictions shortly, responding to the drop in cases. Markit’s final purchasing manager ratings for the services sector may be bullish. Preliminary inflation statistics for May are expected to show a moderate increase in the main consumer price index.
The Reserve Bank of Australia kept its policy unchanged, as expected, and recognized the rapid recovery. However, the Canberra-based institution is lagging behind in reducing its bond purchases, perhaps waiting for the Fed. AUD / USD is heading higher.
China it raised demand from financial institutions and now requires a minimum of 15% in foreign reserves versus 5% in an attempt to lower the yuan. The currency appreciated to the highest level since 2018.
The members of the OPEC + They will meet on Tuesday and may decide to increase oil production in response to increased demand and higher prices. It is unclear whether this additional production is coming from Saudi Arabia or Iran, as the latter may be allowed to export crude if the nuclear talks in Vienna end with a deal.
The cryptocurrencies They have been consolidating their gains, with Bitcoin hovering around $ 37,000 and Ethereum changing hands around $ 2,600.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
