With U.S. employment and ISM data on the horizon, attention is focused on the dollar-yen rate approaching 160 yen

With U.S. employment and ISM data on the horizon, attention is focused on the dollar-yen rate approaching 160 yen

03.06.2026 New

In the previous day’s U.S. currency trading, crude oil prices rose amid renewed tensions in the Middle East, leading to increased demand for the U.S. dollar as a safe-haven asset. The fact that U.S. April JOLTS job openings rose to 7.618 million from the previous month also served as evidence of the resilience of the U.S. labor market, pushing the dollar/yen exchange rate up to the upper 159 yen range.Currently, the pair is approaching the key 160.00 level, and on the upside, the range from 160.00 to around 160.50 is likely to act as resistance. On the downside, the focus will likely be on whether the pair can hold the range from 159.50 to around 159.00. Today, the U.S. ADP Employment Report, the ISM Non-Manufacturing PMI, and the Beige Book are scheduled for release, and we will be watching to see if the U.S. dollar continues to trade at elevated levels.

European currencies came under pressure as market participants focused on expectations of ECB monetary tightening, following the release of the eurozone’s preliminary May HICP, which rose to 3.2% year-on-year from the previous reading, with core inflation indicators also showing resilience. Meanwhile, the strengthening U.S. dollar weighed on the market, and the euro/dollar pair traded with limited upside potential in the low 1.1600 range.The EUR/USD pair fluctuated within a range of 1.1630 to 1.1650 before closing in the upper 1.1630s, and the immediate focus is on whether it can hold near the 1.1600 level. Resistance is likely to be seen around 1.1660 to 1.1680, while support is likely to be found around 1.1620 to 1.1600.Revised service sector PMIs for Europe and the UK are scheduled for release today, and we will be watching to see how the euro and the pound react to the economic sentiment data.

Today’s economic indicators include the revised French May Services PMI at 16:50, the revised German May Services PMI at 16:55, the revised Eurozone May Services PMI at 17:00, remarks by Bank of Japan Governor Kazuo Ueda and the revised UK May Services PMI at 17:30,the Eurozone April Producer Price Index (PPI) at 6:00 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, the U.S. May ADP Employment Report at 9:15 PM, the Canadian Q1 Labor Productivity Index at 10:45 PM, the U.S. May Services and Composite PMI (revised) at 10:45 PM,the US May ISM Non-Manufacturing PMI at 23:00, April Manufacturing New Orders, and the US Federal Reserve Beige Book at 27:00. During New York trading hours in particular, the US ADP Employment Report and the ISM Non-Manufacturing PMI are likely to serve as key indicators of the US economy and employment, so we will carefully monitor the reaction of the US dollar, the yen, and the euro.