Yen Weakens Dramatically as Canadian Dollar Awaits Key Rate Decision

By Tomasz Wisniewski|

Published: June 05 2024, 07:19 GMT+0

Yen Weakens Dramatically as Canadian Dollar Awaits Key Rate Decision

Good morning traders, let’s dive into today’s busy market action. Tuesday brought us Swiss inflation data, which met expectations at 0.3%, and JOLTS job openings from the US at 8.06 million, which were lower than anticipated. Looking ahead, we have the ADP non-farm employment change, expected at 173,000, and a crucial rate decision from the Bank of Canada, which is anticipated to cut rates from 5% to 4.75%. The day will close with the ISM services PMI from the US, expected to come in at 51.

Currently, on the currency front, the Japanese yen is showing significant weakness after being the strongest currency yesterday, indicating a V-shaped reversal in yen pairs. The strongest currencies now are the Australian, New Zealand, Canadian, and US dollars. Notably, USD/JPY, GBP/JPY, and EUR/JPY are showing the most strength.

In the commodities market, we are witnessing a correction in gold and silver prices, while oil continues to decline sharply. After dropping like a rock for two days, oil is attempting a modest correction today, but it’s relatively flat.

Indices are showing positive momentum, with futures flashing green. The Nasdaq, in particular, has broken through key resistance levels, signaling potential gains. Meanwhile, the DAX and Dow Jones are facing some struggles but still exhibit potential for upward movement.

This is your market update for Wednesday. Stay tuned for further developments as we navigate through these pivotal economic indicators and market movements.