Market Drivers; US Session, June 4

Mohamed Abdelhamid 5 June, 2024 2:21 am Commodities, Forex Market, Market Update

The USD Index (DXY) advanced slightly after briefly testing two-month lows near 104.00. On June 5, MBA’s Mortgage Applications are due seconded by ADP Employment Change, the final S&P Global Services PMI and the ISM Services PMI.

The dollar managed to reverse part of the recent weakness after bottoming out in multi-week lows against the backdrop of rising speculation of an interest rate cut by the Fed in November, while investors get ready for key upcoming US data releases.

Forex Space

GBP/USD followed the selling pressure in the risk complex and ended with marked losses despite reaching fresh highs north of 1.2800. The final S&P Global Services PMI is expected on June 5.

The continuation of the retracement in US yields plus comments from a BoJ official supported another positive session of the Japanese currency, dragging USD/JPY to three-week lows.

EUR/USD came under pressure soon after hitting fresh tops in the 1.0915-1.0920 band. The final HCOB Services PMI is due in Germany and the broader Euroland on June 5.

After three consecutive daily advances, AUD/USD succumbed to the uptick in the Dollar and the bearish tone in the commodity complex, revisiting the 0.6630 zone. On June 5, the Ai Group Industry Index comes ahead of the final Judo Bank Services PMI and the GDP Growth Rate Q1.

Commodities

WTI collapsed around 5% and broke below the $73.00 mark per barrel as traders continued to assess the latest OPEC+ meeting and persistent demand concerns.

Prices of Gold maintained its range bound trade unchanged for yet another session on the back of the small uptick in the Dollar and diminishing yields.

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