US Dollar stabilizes following PMI-inspired selloff – Crypto News – Crypto News
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GBP/USD finds some support near mid-1.1400s, eyes BoE for fresh impetus GBP/USD finds some support near mid-1.1400s, eyes BoE for fresh impetus

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US Dollar stabilizes following PMI-inspired selloff – Crypto News

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Here is what you need to know on Tuesday, June 4:

The US Dollar (USD) holds steady against its major rivals early Tuesday after suffering large losses in the American session on Monday. April Factory Orders and JOLTS Job Openings data will be featured in the US economic docket in the second half of the day. 

The data from the US showed on Monday that the ISM Manufacturing PMI dropped to 48.7 in May from 49.2 in April, showing an ongoing contraction in the manufacturing sector’s business activity at an accelerating pace. Additionally, the inflation component of the survey, the Prices Paid Index, dropped to 57 from 60.9, highlighting a softer input inflation. The USD Index declined sharply following these data and touched its lowest level since early April, losing over 0.5% on a daily basis. The USD Index fluctuates slightly above 104.00 in the European morning and the benchmark 10-year US Treasury bond yield stays near 4.4% after falling nearly 2.5% on Monday. Finally, US stock index futures trade marginally lower on the day.

Economic Indicator

JOLTS Job Openings

JOLTS Job Openings is a survey done by the US Bureau of Labor Statistics to help measure job vacancies. It collects data from employers including retailers, manufacturers and different offices each month.

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Bank of Japan (BoJ) Governor Kazuo Ueda said on Tuesday that they will adjust the degree of monetary support if underlying inflation were to continue to move in line with their projections. Meanwhile, Japanese Finance Minister Shunichi Suzuki noted that the forex intervention was intended to respond to speculative moves and added that it had some effects. Following Monday’s drop, USD/JPY holds steady at around 156.00 in the European morning on Tuesday.

EUR/USD gathered bullish momentum and advanced to its highest level since late March above 1.0910. The pair stays in a consolidation phase near 1.0900 early Tuesday.

GBP/USD took advantage of the selling pressure surrounding the USD and advanced to the 1.2800 area.

Following a modest decline seen in the first half of the day, Gold reversed its direction and climbed above $2,350 on Monday, rising over 1% on a daily basis. XAU/USD stages a technical correction and trades at around mid-$2,340s in the European session.

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