Home Forex Today: The dollar keeps losing the battle
FXStreet News

Forex Today: The dollar keeps losing the battle

What you need to know on Wednesday, June 2:

The American currency ended Tuesday lower against most of its major rivals, with the pound being the exception to the rule. Market participants were in a good mood, leading to substantial gains across stocks’ markets. Among European ones, the German DAX reached record highs. US indexes opened firmly higher but trimmed moat gains ahead of the close.

US Treasury yields advanced amid inflation concerns, triggered by US data released on Friday, showing that the core PCE Price Index hit 3.1% YoY in May, above the 2.9% expected and soaring from the previous 1.9%.

The EUR/USD pair trades unchanged in the 1.2220/30 price zone, while GBP/USD fell to 1.4154, ending the day a few pips above this last.

Markit upwardly revised its May Manufacturing PMIs for the US and the EU, and downwardly revised the one for the UK. However, the UK’s figure held well into expansion territory.

The pound’s slide has little behind it. The UK reported zero new coronavirus-related deaths in the last 24 hours, for the first time since the pandemic began. At the same time, the kingdom reported 3,165 new cases, although Prime Minister Boris Johnson said there is no evidence to delay reopening. On Wednesday, the UK will publish April Mortgage Approvals and M4 Money Supply for the same month.

Commodity-linked currencies were mixed, with the AUD/USD pair marginally up, and the USD/CAD ending the day unchanged, after bottoming at 1.2006, a fresh multi-year low on the back of oil-related news.

Gold posted modest intraday losses, ending the day around the 1,900 figure. It traded as high as 1,916.50 but eased on the back of demand for high-yielding assets.

Oil prices reached fresh two-year highs after the OPEC+ meeting, confirming intentions to gradually increase production by easing cuts. They agreed to bring back to the market 2.1 million barrels per day between May and July. WTI touched 68.85, ending the day at around $ 68.00 a barrel.

Ethereum Price Prediction: ETH to face rejection and drop to $2,100

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.