US Dollar Pauses Selloff Ahead of Key US Data and Fed Speeches

US Dollar Pauses Selloff Ahead of Key US Data and Fed Speeches

June 3, 2025 – Forex Market Overview

After starting the week under pressure due to risk-averse sentiment, the US Dollar (USD) showed signs of stabilization early Tuesday. Traders are now eyeing a series of high-impact economic events and Fed commentary expected later in the day.

Market Sentiment and USD Recovery

The initial wave of US Dollar selling was driven by a cautious risk tone, which boosted demand for rival currencies and safe havens. However, as markets regained composure, the USD found support, particularly as investors prepare for new macroeconomic signals.

What to Watch Today

• EU May Inflation Data (Preliminary):
  Europe’s inflation trends will offer insights into the European Central Bank's (ECB) monetary policy path, potentially affecting EUR/USD dynamics.
• US JOLTS Job Openings (April):
  A critical indicator for labor market health. Any surprises could shape expectations for the Federal Reserve's rate outlook and USD volatility.
• Federal Reserve Speeches:
  Several Fed policymakers, including both hawkish and dovish voices, are scheduled to speak during the US trading session. Their guidance on inflation, employment, and interest rates may spark forex movements.
• Tariff Headlines:
  Traders are also alert to any developments in US trade policy, especially potential tariff announcements that could impact global risk sentiment.

Forex Market Outlook

Volatility is expected to rise in the second half of Tuesday, with a focus on how incoming data will influence USD direction and broader market trends. Traders should monitor cross-currency reactions, especially EUR/USD, GBP/USD, and USD/JPY.

Related reading on Tredu.com:

• What is the JOLTS Report and Why It Matters to Forex Traders
• How Inflation Affects Currency Markets
• Federal Reserve Policy Tracker: Latest Updates