Forecasts for the coming week: The US dollar ends the week in positive territory after forceful NFP

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The US dollar (USD) rose to nearly 100.10 on Friday, rising from an intraday low of 99.16, after the US Nonfarm Payrolls (NFP) report showed the economy added 172,000 jobs in May. jobs, well above the expected 85,000, reinforcing expectations that the Federal Reserve (Fed) may raise interest rates later this year.

The U.S. unemployment rate remained at 4.3% while wage growth slowed to 3.4%, suggesting a resilient labor market with less wage pressure.

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Today’s US dollar price

The table below shows the current percentage change of the United States Dollar (USD) against the major listed currencies. The US dollar was strongest against the Australian dollar.

USD EUR GBP JPY BOOR AUD NZD CHF
USD 0.75% 0.65% 0.06% 0.27% 1.26% 1.19% 0.85%
EUR -0.75% -0.11% -0.66% -0.48% 0.50% 0.41% 0.10%
GBP -0.65% 0.11% -0.58% -0.38% 0.61% 0.53% 0.20%
JPY -0.06% 0.66% 0.58% 0.20% 1.19% 1.11% 0.77%
BOOR -0.27% 0.48% 0.38% -0.20% 0.99% 0.91% 0.58%
AUD -1.26% -0.50% -0.61% -1.19% -0.99% -0.07% -0.44%
NZD -1.19% -0.41% -0.53% -1.11% -0.91% 0.07% -0.34%
CHF -0.85% -0.10% -0.20% -0.77% -0.58% 0.44% 0.34%

The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select 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).

The EUR/USD rate retreated towards 1.1520 as the euro was influenced by forceful USD strength. Traders now turn to next week’s European Central Bank (ECB) interest rate decision, during which markets will assess whether policymakers will maintain a hawkish stance despite signs of slowing activity.

GBP/USD fell towards 1.3330 under pressure from a strengthening dollar and cautious risk sentiment. Sterling traders will be monitoring UK gross domestic product (GDP), industrial output and industrial production data next week for fresh clues about domestic dynamics.

USD/JPY broke through the 160.10 to 160.15 region after better U.S. jobs data lifted yields on the dollar and the U.S. currency, while the Japanese yen remained under pressure.

AUD/USD fell sharply near 0.7040, down 1.3%, and was under pressure as a stronger USD and a softer risk tone weighed on the Australian dollar. For additional guidance, investors look to Westpac’s Australian Consumer Confidence Survey and Consumer Inflation Expectations.

USD/CAD rose to a two-month high near 1.3950 despite forceful Canadian labor market data as the U.S. jobs report provided broader support for the dollar. In May, Canada created 87.8 thousand. jobs, and the unemployment rate fell to 6.6%, limiting CAD’s losses.

West Texas Intermediate (WTI) crude oil prices are falling to around $90.50 per barrel.

Gold remained under bulky pressure near $4,320 as stronger U.S. data supported the dollar and reduced near-term expectations for Fed easing.

Anticipating the economic outlook: voices on the horizon

Tuesday, June 9:

Wednesday, June 10:

Thursday, June 11:

Friday, June 12:

  • ECB speech in Sleijpen
  • ECB Nagel’s speech

This will be shaped by central bank meetings and upcoming data releases

Sunday, June 7:

  • Current account in Japan
  • Japan’s GDP
  • Japan’s GDP deflator

Monday, June 8:

  • Factory orders in Germany
  • Confidence of Sentix investors from the euro zone
  • Like-for-like retailing in the UK BRC
  • Westpac consumer confidence in Australia

Tuesday, June 9:

  • China’s trade balance
  • China exports
  • Import from China
  • Germany Industrial production
  • Germany’s trade balance
  • ADP US employment change, 4-week average
  • Existing homes for sale in the USA
  • Meeting of the European Council of the euro area
  • China CPI
  • China PPI

Wednesday, June 10:

  • CPI in the USA
  • BoC interest rate decision
  • BoC Monetary Policy Statement
  • European Council meeting
  • Consumer inflation expectations in Australia

Thursday, June 11:

  • Eurogroup meeting
  • ECB interest rate decision
  • ECB Monetary Policy Statement
  • Initial applications for unemployment benefits in the USA
  • American PPI
  • Monthly US Budget Statement
  • New Zealand Business NZ PMI

Friday, June 12:

  • HICP in Germany
  • EUR EcoFin meeting
  • UK GDP
  • Industrial production in the UK
  • Manufacturing production in the UK
  • France CPI
  • Spain – HICP
  • UK consumer inflation expectations
  • US consumer sentiment in Michigan
  • US consumer expectations in Michigan
  • Inflation expectations in the US IU

Frequently asked questions about WTI crude oil

WTI Oil is a type of crude oil sold on international markets. WTI stands for West Texas Intermediate, one of three main types, including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” due to its relatively low weight and low sulfur content. It is considered a high-quality oil that can be easily refined. It originates in the United States and is distributed through the Cushing Junction, considered the “Crossroads of the World.” It is a reference point for the crude oil market, and the WTI price is often quoted in the media.

Like all assets, supply and demand are key factors influencing the price of WTI crude oil. Therefore, global growth may drive increased demand and, conversely, frail global growth. Political instability, wars and sanctions can disrupt supply and affect prices. Another key factor shaping prices are the decisions of OPEC, the group of major oil-producing countries. The value of the US dollar affects the price of WTI crude oil because oil is mainly sold in US dollars, so a weaker US dollar can make oil more affordable and vice versa.

Weekly crude oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Administration (EIA) influence the price of WTI crude oil. Inventory changes reflect fluctuations in supply and demand. If the data shows a decline in inventories, it may indicate increased demand, which will result in an augment in the price of oil. Higher inventories may reflect increased supply, which causes prices to fall. The API report is published every Tuesday and the EIA report the next day. Their results are usually similar and are within 1% of each other 75% of the time. EIA data is considered more reliable because it is a government agency.

OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 oil-producing countries that jointly decide on production quotas for member countries at meetings held twice a year. Their decisions often influence the prices of WTI crude oil. When OPEC decides to cut quotas, it can tighten supply, which will push up oil prices. OPEC increasing production has the opposite effect. OPEC+ refers to an expanded group that includes ten additional non-OPEC members, the most notable of which is Russia.

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