Forex News Roundup for 02 June, 2023

• The upcoming June meeting of the Federal Reserve is widely anticipated to result in another 0.25% interest rate hike. However, there is increasing speculation that the Fed might opt to pause the hikes.
• Fed member Harker emphasized that the economy is progressing steadily and that rate increases are not necessary at every meeting. Adding to this sentiment, the US JOLTS Job Openings data exceeded expectations, with 10.1 million job openings reported compared to the anticipated 9.41 million.
• Within the Forex market, the US Dollar is once again defying its long-standing bearish trend and experiencing an upswing. The prevailing market dynamics have been largely influenced by the weakness observed in the New Zealand Dollar and the strength exhibited by the Australian Dollar.
• Traders who focus on market trends are likely to seek long positions in the USD/JPY currency pair, as it recently achieved a new six-month high. Conversely, short positions in NZD/USD are also considered appealing, given the ongoing weakness of the New Zealand Dollar following the surprise announcement from the RBNZ last week, signaling that it had reached its terminal rate.
• Following the unexpected release of resilient Chinese factory data, stock markets across the Asia Pacific region enjoyed their most impressive day in a month. The encouraging data not only provided a boost to investor sentiment but also had a favorable effect on the strength of the Australian Dollar.
• After receiving approval from the House of Congress, the US debt limit deal is now headed to the Senate for final ratification. There is a widespread belief that the process will proceed smoothly without any anticipated obstacles in its passage.
• The release of German Preliminary CPI data yesterday revealed an unexpected month-on-month decline of 0.1%, surpassing the projected increase of 0.2%. This unexpected downturn could potentially exert further downward pressure on the Euro, as it diminishes the rationale for future rate hikes.
• The recently released Canadian GDP data from yesterday pleasantly surprised analysts, as it remained unchanged on a monthly basis, surpassing the projected decline of 0.1%. This slight improvement in performance brings a glimmer of positivity to the Canadian economy.