The Greenback recovered yesterday vs. a basket of major currencies as U.S. treasury yields edged higher. The USD rose slightly amid strong expectations that the Fed. is likely to hike interest rates in June.
Markets await U.S. nonfarm payrolls data, which are expected to reveal the US economy’s addition of 185K jobs in May, while the unemployment rate could settle at 4.4%.
The Single currency failed to hold onto gains after hitting the highest level in six months vs. the Greenback, negatively affected by a strong US data.
The common currency declined to $1.12 in anticipation of the US Non-Farm Payroll. It is worth mentioning that a higher than expected reading could push Euro to trade below $1.12.
Gold prices pared its gains, negatively affected by a strong USD, especially with US private employers’ adding 253k jobs in May, which are above market’s expectations, resulting in an interest rate hike by the Federal Reserve in June.
However, the precious metal turned positive on President Trump's decision to withdraw from the Paris climate pact. The yellow metal is awaiting the US Non-Farm Payroll, as a higher than expected reading could push the gold to trade below $1,260, while a lower than expected reading should be taken as bullish for the Gold.
Oil prices failed to manage its gains yesterday amid glut concerns and trade below $50. U.S. crude fell to $48, despite U.S. crude inventories dropped 6.4 million barrels and Gasoline inventories also dropped sharply as well.
The most important economic events:
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