Forex Major Currencies Outlook (June 06, 2016)

In addition, the previous reading was downgraded from 160K to 123K while the ISM non-manufacturing PMI showed a sharper drop to 55.7 to 52.9. The US labor market conditions index is due today but traders could pay closer attention to Fed Chairperson Yellen's speech.

EUR

The euro took advantage of dollar and pound weakness but was barely able to hold on to its gains against its other rivals. Euro zone final services PMI came in mostly weaker than expected while the region's retail sales showed a flat reading. German factory orders data is due today and a 0.4% decline is eyed while Brexit-related updates are also affecting euro price action.

GBP

The pound was the biggest loser in recent sessions as more Brexit polls showed a lead in favor of those voting to leave the EU. In addition, remarks from pro- Brexit leaders on immigration and security appear to be yielding more "leave" votes. UK services PMI was stronger than expected at 53.5 versus the 52.5 estimate. There are no major reports due from the UK today.

CHF

The franc advanced against the dollar and its European counterparts thanks to the surge in risk aversion in the region. There were no reports from Switzerland then and none are due today.

JPY

The yen was one of the biggest winners on Friday as the drop in dollar demand led traders to flock to the yen. Japanese average cash earnings was actually weaker than expected with a mere 0.3% uptick. There are no reports due from Japan today.

Commodity Currencies (AUD, NZD, CAD)

The comdolls were able to rally against the dollar but still gave up ground to the yen. Canada's trade deficit was wider than expected at 2.9 billion CAD versus the estimated 2.5 billion CAD shortfall. In Australia, the MI inflation gauge fell by 0.2% while ANZ job advertisements rebounded by 2.4%. No other reports are due from the comdoll economies today.

By Kate Curtis from Trader's Way