Forex Today: Investors look ahead to US NFP report
Here is what you need to know for Friday, June 5:
The US Dollar Index (DXY) fell toward 99.18 early Thursday before steadily climbing during the North American session to 99.45 as investors digested comments from a series of Federal Reserve (Fed) officials ahead of the highly anticipated Nonfarm Payrolls report on Friday. San Francisco Fed President Mary Daly said policy is in a good place and emphasized that getting inflation back to target remains the Fed's top priority.
Meanwhile, Kansas City Fed President Jeffrey Schmid warned that inflation is still too high and suggested the central bank may need to consider whether higher rates are necessary if price pressure persists. After these hawkish remarks, the Greenback gradually gained as Thursday wore on.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.12% | -0.04% | -0.05% | 0.07% | -0.07% | -0.05% | -0.34% | |
| EUR | 0.12% | 0.06% | 0.07% | 0.19% | 0.03% | -0.03% | -0.22% | |
| GBP | 0.04% | -0.06% | 0.02% | 0.13% | -0.03% | -0.10% | -0.30% | |
| JPY | 0.05% | -0.07% | -0.02% | 0.11% | -0.03% | -0.10% | -0.30% | |
| CAD | -0.07% | -0.19% | -0.13% | -0.11% | -0.14% | -0.21% | -0.41% | |
| AUD | 0.07% | -0.03% | 0.03% | 0.03% | 0.14% | -0.05% | -0.24% | |
| NZD | 0.05% | 0.03% | 0.10% | 0.10% | 0.21% | 0.05% | -0.21% | |
| CHF | 0.34% | 0.22% | 0.30% | 0.30% | 0.41% | 0.24% | 0.21% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
EUR/USD closed out the North American session up 0.1% near 1.1610 as traders continue to monitor the Eurozone growth outlook and await fresh US labor market data for additional direction.
GBP/USD trades around the 1.3420 region, struggling to gain momentum against the Greenback.
USD/JPY declined slightly near the 160.00 zone, right at the intervention level where the Bank of Japan (BoJ) has intervened in the past.
AUD/USD hovers near the 0.7130 price region as the Australian Dollar (AUD) found some support after Reserve Bank of Australia (RBA) Governor Michele Bullock reiterated the central bank's commitment to returning inflation to target, but gains were limited as the Greenback remained supported by resilient US economic data and a stable labor market.
West Texas Intermediate (WTI) Oil trades on the back foot at $93.20 per barrel, even as reports suggest diplomatic efforts are ongoing, though significant obstacles persist following Hezbollah's rejection of a US-backed ceasefire proposal, and questions remain over the terms of a broader agreement with Tehran.
Gold rose near the $4,480 level, supported by ongoing uncertainty over the economic outlook, the Middle East conflict, and inflation.
What’s next in the docket:
Friday, June 5:
- Eurozone GDP
- Eurozone Employment Change
- CA Employment Report
- CA Average Hourly Wages
- CA Unemployment Rate
- US Nonfarm Payrolls
- US Unemployment Rate
- US Average Hourly Earnings
- US Labor Force Participation Rate
- CA Ivey PMI
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
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