Forex Today: ECB Rate Decision & Key US Data Set to Drive Market Volatility

Forex Market Outlook – Thursday, June 5

What’s Moving the Markets?

The forex market remains range-bound in early Thursday trading, but volatility is expected to spike due to high-impact events in both Europe and the US.

ECB Rate Decision in Focus

The European Central Bank (ECB) will release its monetary policy decision today. While no drastic change in rates is widely expected, traders will scrutinize the tone of the accompanying statement and comments from ECB President Christine Lagarde, particularly on inflation and future rate cuts.

💡 Tip for Tredu readers: Review past ECB decisions and rate movements here.

Key US Economic Data Incoming

From the US, markets await:

• Challenger Job Cuts (May)
• Weekly Initial Jobless Claims
• Goods Trade Balance (April)

These indicators are crucial to assess labor market strength and trade flows, which are closely monitored by the Federal Reserve as part of its policy guidance.

Fed Officials to Speak

Multiple Federal Reserve officials are scheduled to deliver speeches later in the day. Their comments may offer insights into the Fed’s rate outlook and inflation management.

Related: Understanding Fed commentary – visit our central bank guide.

What to Watch Next

• Market reaction to Lagarde’s press conference
• Surprises in US jobless claims or trade data
• Hawkish/dovish tones in Fed speeches