Yesterday’s story was about the US dollar ’s weakness . Between a risk-off morning with gold racing to 4-week highs and almost everything rallying against the USD, it’s a bad day for the greenback.
US Equities began the session mixed but still finished up all-around, with the Nasdaq leading the charge again—up 0.80%.
Other indices around the globe also closed in the green as the sentiment got more positive. The United States Trade Representative (USTR) has announced a three-month extension to some Chinese goods until August 31, 2025 - leaving more time for different parties to reach an agreement.
In Forex, all majors rallied against the USD with the
NZD
on top of majors at +1.30% followed by the
AUD
and the
JPY
- respectively up 1.02% and 0.85%.
Oil
also rallied from the bottom of its range as battles between Russia and Ukraine dominated the announcement of more supply from OPEC+.
The market was also expecting a bigger hike than what was announced. Anyhow, Oil is approaching the upper bound of its range around $64 - closing up 3.88% on the session.
A Picture of Yesterday’s Performance for Major Currencies
Asia-Pacific currencies outperformed the US Dollar in yesterday’s FX session.
The New Zealand dollar broke above its 0.59–0.60 range, supported by reduced RBNZ rate cut expectations and renewed trade deal extensions—positive news for the region closely tied with China.
The AUD and NZD tend to rally on positive news from China.
The Loonie got dragged from the USD weakness, finishing the session "only" up 0.20%. The market might be waiting for the Bank of Canada meeting on Wednesday, June 4th, before moving further.
Bitcoin is finishing the session unchanged, still consolidating above the $100,000 mark.
On the other hand, Gold bulls enjoyed the USD weakness to push the precious metal towards a breakout from its descending channel.
Economic Calendar for the June 3rd Session
The overnight session has a few of market-moving events including RBA Minutes (21:30 E.T.), China Caixin Manufacturing PMI (22:00) expected at 50.6, a speech from Bank of Japan governor Ueda at 3:50 A.M. and finally Harmonized CPI Data from the Eurozone at 5:00 A.M.
The North American Session will only be concerned with the JOLTS release, where we will have a better idea of the state of employment in the US - I feel that markets will start to take a closer look at this data as there is still uncertainty about the US Economy with ongoing trade tension.
There will also be two speakers from the FED today, with FED’s Cook and FED’s Goolsbee. The president of the Chicago FED, a dove, has been speaking at a few events already since last week. He notably said that "If we can get past this bumpy period, the dual mandate looks pretty good," - Positive about the Inflation outlook.