The US dollar strengthened on Tuesday after falling sharply to its lowest level against the euro, British pound, and Swiss franc since mid-March as investors consolidated in other currencies ahead of the close from 2010 increase and PMI data release.
The dollar index was last up 0.11% at 104.123. The euro down 0.23% to $1.0878. Sterling down 0.18% to $1.2784.
Job openings, a measure of labor demand, were down 296,000 to 8.059 million on the last day of April, the lowest level since February 2021.
Market participants had their focus on the JOLTS data, ahead of Friday’s U.S. job report, which is expected to show new jobs created of 185,000 in May, up from 175,000 in April.
Gold reversed gains from a bounce late in the previous session following weaker U.S. manufacturing data. The latest fall in the safe-haven asset also came despite a dip in wider risk sentiment driven by the data.
Crude oil and gasoline prices today are mixed, with crude falling to a 3-3/4 month low. A stronger dollar today is weighing on energy prices. Crude is also under pressure on negative carryover from Sunday when OPEC+ rolled out a plan to restore some crude production in Q4, which sparked worries about a glut in global oil supplies. In addition, signs of weakness in the US economy are bearish for energy demand and crude prices after the Apr JOLTS job openings fell more than expected to a 3-year low.
Copper futures extended their fall, prices touched the lowest in one month to fully erase May’s rally that took prices to a record high amid evidence of low demand in the near term.
China’s official manufacturing PMI unexpectedly pointed to a contraction in May, underscoring poor domestic demand for industrial goods through major manufacturers.
MCX gold futures settled -0.29% to 71997.Silver settled -2.58% to 89659.Copper settled -1.89% to 863.50. Crude oil -0.23% at 6167. Natural gas -2.49% to 219.6
Economic data and events scheduled today.PMI
Australia
At 7.00am- GDP q/q. Data is foreseen at 0.2% from previous 0.2%.
Above data could have a neutral impact on the dollar.
China
Caixin Services PMI. Data is foreseen at 52.5 from previous 52.5.
Above data could have an neutral impact on the dollar.
Eurozone
At 12.15pm- French Industrial Production m/m. Data is foreseen at 0.3%, previous -0.3%.
At 12.45pm- Spanish Services PMI. Data is foreseen at 56.5 from previous 56.2.
At 1.15pm- Italian Services PMI. Data is foreseen at 54.5 from previous 54.3.
At 1.20pm- French Final Services PMI. Data is foreseen at 49.4 from previous 49.4.
At 1.25pm- German Final Services PMI. Data is foreseen at 53.9 from previous 53.9.
At 1.30pm- Final Services PM. Data is foreseen at 53.3 from previous 53.3.
At 2.30pm- PPI m/m. Data is foreseen at -0.6% from previous -0.4%.
Above data could have a volatile impact on the Euro.
Canada
At 6.00pm-Labor Productivity q/q. Data is foreseen at -0.2% from previous 0.4%.
At 7.15pm-
BOC Rate Statement. Overnight Rate. Expect to cut by 4.75% from previous 5%.
At 8.00pm- BOC Press Conference
Above data could have a volatile impact on the dollar.
US
At 5.45pm- ADP Non-Farm Employment Change. Data is foreseen at 173K from previous 192k.
At 7.30pm-ISM Services PMI. Data is foreseen at 51.0 from previous 49.4.
At 8.00pm- Crude Oil Inventories. Previous was at -4.2M.
Above data could have a volatile impact on the dollar.
Happy Trading!
Commodity Samachar
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