With U.S. employment data on the horizon, attention is focused on the upside potential for the dollar-yen pair

With U.S. employment data on the horizon, attention is focused on the upside potential for the dollar-yen pair

02.06.2026 New

In the previous day’s U.S. currency trading, the U.S. May ISM Manufacturing PMI rose to 54.0 from 52.7 the previous month, highlighting the resilience of the U.S. manufacturing sector. Meanwhile, concerns over uncertainty surrounding the situation in the Middle East and inflationary pressures persisted, causing the U.S. dollar to remain at elevated levels against the yen.The USD/JPY pair fluctuated within a range of 159.25 to 159.77 before closing near 159.65, continuing to trade near the key 160.00 level. On the upside, the area around 159.80 to 160.00 is likely to act as resistance, while on the downside, the focus will be on whether the pair can hold the 159.30 to 159.00 range.Today, the U.S. April JOLTS job openings report is scheduled for release, and we will be watching to see if the U.S. dollar gains further upside momentum based on market sentiment regarding the U.S. labor market.

European currencies saw the euro struggle to gain ground against the dollar, as the eurozone’s revised May manufacturing PMI remained in expansionary territory, while the dollar’s resilience weighed on the currency. The EUR/USD pair traded within a range of 1.1607 to 1.1666 before closing near 1.1635, and is now searching for direction in the low 1.1600s.On the upside, the 1.1660 to 1.1700 range is likely to be watched, while on the downside, the 1.1600 to 1.1580 range is likely to be in focus. The flash estimate for the Eurozone’s May HICP is scheduled for release today, and we will be watching the euro’s reaction to the inflation data.

Today’s economic indicators include Japan’s May monetary base at 08:50, Australia’s April housing construction permits and Q1 current account balance at 10:30,the UK April consumer credit balance and M4 money supply at 17:30, the Eurozone May Harmonized Index of Consumer Prices (HICP, flash estimate) and HICP core index at 18:00, the South Africa April-June BER Business Confidence Index at 19:00, and the US April JOLTS job openings and remarks by Bank of England (BOE) Governor Bailey at 23:00.The Eurozone HICP is expected to come in at 3.2% year-on-year, the HICP Core Index at 2.4% year-on-year, and U.S. JOLTS job openings at 6.865 million. During European trading hours, Eurozone inflation indicators are likely to be the key drivers, while U.S. employment-related indicators will take center stage during New York trading hours; we will carefully monitor the reactions of the euro, pound, and U.S. dollar.