Ella 
Here’s what you need to know on Thursday, June 1:
Despite the upbeat market sentiment, the dollar retained its bullish momentum in the second half of the week. Eurostat will release May inflation figures during the European session, and the ECB will release the May monetary policy meeting accounts. In the second half of the week, changes in ADP employment in the United States in May, weekly jobless claims data from the U.S. Department of Labor and ISM manufacturing PMI survey will appear on the U.S. economic calendar.
U.S. ADP employment, ISM manufacturing PMI preview: the dollar first fell and then rose?
The U.S. dollar index hit its strongest level since mid-March above 104.50 on Wednesday after the U.S. Bureau of Labor Statistics (BLS) reported 10.1 million job openings in the last working day of April, compared with 9.74 million in March and 9.37 in the market Ten thousand. Meanwhile, the Federal Reserve noted in its Beige Book that overall economic activity was little changed in April and early May. “Prices increased moderately during the reporting period, although the rate of increase slowed in many regions,” the publication further wrote.
Investors breathed a sigh of relief late Wednesday after the House of Representatives passed a bill suspending the debt limit until Jan. 1, 2025. The U.S. dollar index retreated from session highs after the development, but ended in positive territory. On the other hand, major U.S. stock indexes closed lower ahead of the vote, while the benchmark 10-year U.S. Treasury yield managed to recover to 3.7%. U.S. stock futures traded flat early Thursday, while the 10-year yield held near 3.7%. Notably, Philadelphia Fed President Patrick Harker and Fed Governor Philip Jefferson both said on Wednesday that they were in favor of skipping a rate hike at their next meeting. However, these comments do not appear to have had a negative impact on the dollar’s valuation for the time being.
EUR/USD continued to trade below 1.0700 on Thursday, pressured by a broadly stronger greenback. The annual harmonized consumer price index for the euro zone is expected to have risen 6.3% in May, compared with a 7% rise in April.
GBP/USD lost traction after closing out positive lines in the first three sessions of the week and started to extend lower towards 1.2400 during the European morning session.
USD/JPY regained traction on Thursday and pushed towards 140.00. Earlier in the day, data from Japan showed that capital spending rose 11% in the first quarter, well above market expectations of 5.5%.
Gold prices climbed above $1,970 on Wednesday, but erased a large portion of the day’s gains by the close before trading just above $1,960. XAU/USD maintains moderate bearish pressure during the European morning, trading around $1,950.
Bitcoin continued to fall on Thursday, last down 1.5% on the day, around $26,800. Ethereum fell more than 1 percent on Wednesday and extended its slide towards $1,850 early Thursday.
