Market Updates

Market Update - 02 June 2023

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Publish date: Fri, 02 Jun 2023, 06:03 PM
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Market Updates

AUD/USD scales higher for the second straight day and jumps to a nearly two-week high. Reduced bets for another 25 bps Fed rate hike in June continue to weigh on the Greenback. A positive risk tone further benefits the risk-sensitive Aussie ahead of the key US NFP report.

EUR/USD looks to extend Thursday’s sharp uptick well past 1.0700. Improved sentiment in the risk complex bolsters the pair so far. The US economy is expected to have added nearly 200K jobs in May. EUR/USD trims part of the earlier advance to multi-day highs near 1.0780 as a more cautious tone emerges ahead of the release of the US jobs report.

USD/CAD continues losing ground for the third straight day and drops to a nearly three-week low. A further recovery in Oil prices underpins the Loonie and exerts pressure amid a weaker Greenback. Reduced bets for another 25 bps Fed rate hike in June weigh on the USD ahead of the NFP report.

NZD/USD climbs to over a one-week high on Friday amid some follow-through USD selling. Diminishing odds for another 25 bps Fed rate hike in June continue to weigh on the buck. A positive risk tone further benefits the risk-sensitive Kiwi ahead of the key US NFP report.

USD/JPY clings to mild gains during the first positive day in five. Sustained downside break of previous key support, bearish trend channel keeps Yen pair sellers hopeful. 100-HMA acts as the last defense of Yen sellers, bumpy road awaits pair sellers on US NFP day.

GBP/USD took advantage of the persistent USD weakness and rose to its highest level in two weeks above 1.2500 on Thursday. The pair clings to small daily gains near 1.2550 early Friday.

GBP/JPY remains on the front foot near the highest levels since February 2016. BoE vs. BoJ divergence, recently upbeat UK data allow pair buyers to keep the reins. Yields recover amid market’s rush for bonds, Gold amid easy US Dollar, receding hawkish Fed bets. Risk catalysts are the key for fresh impulse.

USD/INR has sensed resistance around 82.40 amid weakness in the USD Index. The Indian Rupee will also remain on tenterhooks as the RBI is expected to keep its repo rate steady. USD/INR has witnessed a steep fall after a breakdown of the inventory distribution.

USD/MXN remains pressured at the lowest levels in two weeks after snapping two-day uptrend. Clear downside break of short-term support line, bearish MACD signals favor Mexican Peso buyers. 50-SMA, descending resistance line from late April adds to the upside filters. Oscillators keep sellers hopeful but the downside appears bumpy.

USD/CHF remains depressed, poking the key support, ahead of the key US employment report for May. 200-HMA, oversold RSI restrict immediate downside of Swiss Franc pair. Multiple hurdles, Fed concerns prod buyers amid sluggish session.

USD/CAD is continuously trading sideways below 1.3450 following the footprints of the USD Index. Seventh straight contraction in US ISM Manufacturing PMI and dovish Fed commentary weigh heavily on the USD Index. USD/CAD witnessed a bloodbath after failing to surpass the supply zone plotted in a range of 1.3652-1.3668.

The US Bureau of Labor Statistics (BLS) will release the May jobs report on Friday, June 2 at 12:30 GMT and as we get closer to the release time, here are the forecasts by the economists and researchers of 10 major banks regarding the upcoming employment data. Nonfarm Payrolls in the US are forecast to rise by 190K vs. 253K in April. Meanwhile, the unemployment rate is expected to rise a tick to 3.5% and average hourly earnings are seen steady at 4.4% year-on-year.

Gold price is making efforts for keeping auction confidently above $1,980.00 amid the delicate USD Index. Market sentiment is quite positive after the clearance of the US debt-ceiling bill in Congress. The only catalyst that can save the USD index from a further casualty is the US NFP data.

Silver climbs to a two-week high on Friday, albeit struggles to capitalize on the move. Bulls now await a sustained move beyond the $24.00 mark before placing fresh bets. Weakness below the 100-day SMA is needed to negate the near-term positive outlook.

Market sentiment dwindles as traders await the key US employment report for May. S&P500 Futures print mild gains after snapping three-day downtrend the previous day. US 10-year, two-year Treasury bond yields dribble around respective weekly bottoms. Receding hawkish Fed bias highlights today’s NFP, last rounds of Federal Reserve talks before blackout also important to observe.

Bitcoin has gained traction and recovered above $27,000 from the weekly low it set near $26,500 in the Asian trading hours on Friday. Following a two-day slide, Ethereum has staged a rebound and was last seen rising more than 1% on a daily basis at around $1,900.

Source: FXStreet, DailyFX

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

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