Forex Today: US Dollar gains on strong JOLTS data, traders await key labor market reports
Here is what you need to know for Wednesday, June 3:
The US Dollar Index (DXY) strengthened near the 99.20 price zone after the latest JOLTS Job Openings report surged to 7.618 million in April from 6.887 million in March, well above market expectations of 6.88 million.
Meanwhile, markets also digested news that United States (US) President Donald Trump signed an executive order promoting artificial intelligence innovation and security, including measures to strengthen cybersecurity standards across government agencies.
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 Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.01% | -0.12% | 0.16% | -0.04% | -0.32% | 0.12% | 0.11% | |
| EUR | 0.01% | -0.10% | 0.15% | -0.05% | -0.29% | 0.14% | 0.10% | |
| GBP | 0.12% | 0.10% | 0.24% | 0.06% | -0.17% | 0.25% | 0.18% | |
| JPY | -0.16% | -0.15% | -0.24% | -0.19% | -0.46% | -0.03% | -0.08% | |
| CAD | 0.04% | 0.05% | -0.06% | 0.19% | -0.27% | 0.17% | 0.10% | |
| AUD | 0.32% | 0.29% | 0.17% | 0.46% | 0.27% | 0.42% | 0.36% | |
| NZD | -0.12% | -0.14% | -0.25% | 0.03% | -0.17% | -0.42% | -0.06% | |
| CHF | -0.11% | -0.10% | -0.18% | 0.08% | -0.10% | -0.36% | 0.06% |
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 trades muted near the 1.1630 area as broad US Dollar (USD) strength pressures the shared currency. Traders remain focused on incoming Eurozone data and European Central Bank (ECB) commentary for additional clues about the region's economic outlook.
GBP/USD elevated slightly toward the 1.3470 region as the stronger Greenback dominates market sentiment. Additional pressure emerged after comments from Bank of England (BoE) Monetary Policy Committee (MPC) member Megan Greene warned that households and businesses are increasingly sensitive to inflation and argued that the risks of failing to act against persistent inflation outweigh the risks of tightening policy too aggressively.
USD/JPY advances toward the 159.90 zone amid a broader USD strength. The Japanese Yen (JPY) remains under pressure as widening yield differentials continue to favor the US Dollar, despite lingering expectations that the Bank of Japan may continue to normalize policy gradually.
AUD/USD climbs toward the 0.7180 level as Investors are now turning their attention to Australia's upcoming Q1 Gross Domestic Product (GDP) report and S&P Global Purchasing Managers Index (PMI) releases, which could provide fresh clues about the health of the Australian economy and the Reserve Bank of Australia's policy outlook.
Gold trades little changed near the $4,490 area as the stronger US Dollar and rising Treasury yields reduce demand for the non-yielding precious metal.
West Texas Intermediate (WTI) Oil trades near the $93.60 region as markets balance resilient US economic data against concerns about global demand.
What’s next in the docket:
Wednesday, June 3:
- Spain Services PMI
- Germany PMI
- Eurozone PMI
- Eurozone PPI
- US ADP Employment Change 4-week average
- US PMI
- US Factory Orders
- AU Trade Balance
Thursday, June 4:
- CH CPI
- Eurozone Retail Sales
- US Challenger Job Cuts
- US Initial Jobless Claims
- US Nonfarm Productivity
- US Unit Labor Costs
- JP Labor Cash Earnings
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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