The US dollar is showing signs of weakening.

During the trading session on June 2nd, the US dollar remained stable as investors shifted to a wait-and-see mode, awaiting new developments from the Middle East peace talks and key economic data.

US dollar. Photo: THX/TTXVN

However, technical analysis charts are sending out a series of warning signals that the currency's upward trend is at risk of ending soon.

According to several market analysts, the US dollar is showing signs of weakness on daily charts. Although the USD index, a measure of the greenback's strength against six other major currencies, hit a seven-week high last week, the market then witnessed a sharp reversal.

A sharp rise followed by a rapid reversal in the US dollar is often a signal of the end of a recovery rather than the beginning of a new rally. Furthermore, the Relative Strength Index (RSI) is indicating weakening buying pressure. If the USD index falls below 98.90 points, it would reinforce the view that the recovery has ended and could pave the way for a deeper decline to the 97.60-97.65 point area.

Currently, the currency market is being strongly influenced by developments in the conflict in Iran. Kristina Clifton, senior foreign exchange strategist at Commonwealth Bank of Australia, believes that positive news regarding negotiations to end the war will put downward pressure on the US dollar, as it is a safe-haven asset.

As of the morning of June 2nd, the US dollar index remained unchanged at 99.17 points, while the euro rose slightly by 0.03% to 1.1634 USD/euro.

In Japan, Finance Minister Satsuki Katayama affirmed that authorities are prepared to take necessary measures in the foreign exchange market. This statement came as the yen fell 0.02%, trading at 159.66 yen/USD – close to the 160 yen/USD threshold that the market considers a "red line" for government intervention.

Masafumi Yamamoto, chief foreign exchange strategist at Mizuho Securities, warned that if the exchange rate exceeds 160 yen/USD, Japan could escalate its warnings or even intervene directly. The market is also awaiting a speech by Bank of Japan Governor Kazuo Ueda on June 3rd for signals regarding a possible interest rate hike next week.

This week, investors are also focusing on employment data from the US Department of Labor and the eurozone's May consumer price index.

Under pressure from energy prices and inflation, the market is speculating about the possibility of the US Federal Reserve (Fed) raising interest rates, rather than the expected cuts seen before the Iran conflict. The US monthly jobs report, to be released on June 5th, will be a key factor in determining the Fed's short-term policy path. Economists forecast that the US will add 85,000 jobs in May and that the unemployment rate will remain at 4.3%.

Source: https://baotintuc.vn/thi-truong-tien-te/dong-usd-co-dau-hieu-suy-yeu-20260602111401569.htm