(By ATFX Analyst Team)
Key TakeawaysTrump stated that negotiations with Iran are ongoing, denying reports that talks have been suspended, and expects a deal to be reached. Meanwhile, Lebanon announced that Israel and Hezbollah have reached a partial ceasefire agreement. Today’s Main Focus: Markets are primarily focused on Eurozone inflation, with the May CPI expected to rise to around 3.2% year-on-year. Economists generally expect the European Central Bank (ECB) to raise interest rates in June. If the data exceeds expectations, rate-hike bets could be further reinforced, providing short-term support for the Euro. |
Global Market Review 02/06/2026
U.S. manufacturing activity exceeded expectations in May, reaching a four-year high. Wall Street stocks edged higher on Monday to record fresh highs as investors focused on progress in U.S.-Iran peace talks. Dow closed up 0.09%, S&P 500 rose 0.26%, and Nasdaq gained 0.42%. As investors digested the latest developments in Middle East peace negotiations, the U.S. dollar and Treasury yields rebounded, while spot gold fell 1.5% to close at $4,468.54 per ounce. Oil prices rebounded sharply, rising more than 4%, after Iran’s Tasnim News Agency reported that Tehran had suspended indirect talks with the United States.
Key Events Today:
- 17:00 EU CPI Flash MAY ***
June 3rd
- 04:30 API Crude Oil Stock Change ***
- 07:00 AU Services & Composite PMI Final MAY **
- 08:30 JP Services & Composite PMI Final MAY **
- 09:30 AU GDP Q1 ***
- 09:45 CN Services & Composite PMI MAY **
- 15:55 EU GERMANY Services & Composite PMI Final MAY **
- 16:00 EU Services & Composite PMI Final MAY **
- 16:30 GB Services & Composite PMI Final MAY **
- 16:30 BoJ Gov Ueda Speech ***
- 17:00 EU PPI APR ***
- 20:15 US ADP Employment Change MAY ***
- 21:45 US Services & Composite PMI Final MAY **
- 22:00 US ISM Services PMI MAY ***
- 22:30 EIA Crude Oil Stocks Change **
Markets Analysis 02/06/2026
- Resistance: 1.1666 / 1.1683
- Support: 1.1593 / 1.1576
Following yesterday’s choppy decline, EUR/USD edged higher to around 1.1635 in Tuesday’s early Asian session. However, lingering uncertainties over the situation in the Middle East capped gains. Today’s primary focus is on the Eurozone CPI, which will serve as a direct gauge of the ECB’s next interest rate decision.
Analyst View: EUR/USD came under pressure yesterday as the US dollar rebounded and is now trading around its 10-day moving average. A break below this level would signal that last week’s late-week rally has fizzled, potentially reopening a path back below the 1.1600 handle. Conversely, if this moving average support holds, the pair could test above 1.1660, though resistance at the 20-day moving average warrants caution.
Bias: Short-term bearish
- Resistance: 1.3522 / 1.3564
- Support: 1.3386 / 1.3343
The UK public’s inflation expectations for the year ahead eased slightly in May, but the Pound recorded muted price action on Monday. While US-Iran tensions boosted the safe-haven US dollar—pushing GBP/USD down towards the 1.3400 handle—the pair found solid support there and clawed back most of its intraday losses.
Analyst View: The pair has rebounded after finding support below 1.3410 for two consecutive sessions and continues to trade within the range of its major daily moving averages. Today’s Eurozone CPI will likely provide indirect cues for the pair.
Bias: Range-bound
- Resistance: 160.08 / 160.41
- Support: 159.39 / 159.06
The Yen weakened again on Monday, pushing USD/JPY back into the level that could trigger government intervention. The pair remained pinned near its one-month high, as Middle East tensions temporarily offset intervention fears, pushing the rate higher.
Analyst View: USD/JPY refreshed its late-April high yesterday as bulls crept closer to the critical 160 psychological barrier. While the pair may continue to push higher today, looming intervention anxieties around this level could cap further gains, and profit-taking at these highs cannot be ruled out.
Bias: Cautious at highs
- Resistance: 94.97 / 96.92
- Support: 88.66 / 86.74
Crude oil surged more than 4% on Monday, fueled by ongoing clashes between Israeli forces and Hezbollah and by a report from Iran’s Tasnim News Agency that Tehran had halted indirect talks with the US. However, Trump’s latest remarks that negotiations are still ongoing could take the wind out of oil’s sails.
Analyst View: Crude prices snapped a seven-day losing streak yesterday. However, the rally faces immediate resistance at the 10-day and 20-day moving averages at $94 and $97, respectively. With US-Iran talks still active, overnight gains may struggle to extend further.
Bias: Rally hitting resistance
- Resistance: 4531 / 4556
- Support: 4452 / 4419
- Resistance: 77.82 / 78.87
- Support: 72.62 / 71.80
Gold fell below $4,500 yesterday as a temporary escalation in tensions in Iran fueled inflation worries and reinforced bets on Fed rate hikes later this year. During Tuesday’s early Asian session, gold remained under pressure amid ongoing uncertainties in the Middle East.
Analyst View: Gold failed to sustain last week’s two-day winning streak yesterday, turning lower amid a rebounding US dollar and US-Iran geopolitical uncertainty. Having broken below its 10-day moving average, the focus now shifts to whether the metal will target the $4,400 level next.
Bias: Short-term bearish
- Resistance: 51163 / 51274
- Support: 50797 / 50684
At the start of June, all three major US stock indices closed at fresh record highs. However, gains were modest amid instability surrounding the US-Iran situation, with the Dow closing slightly higher, maintaining its footing above the 51,000 threshold.
Analyst View: Dow dipped yesterday before clawing back to close near its intraday highs. As a result, the bulls still carry enough momentum to keep pushing prices higher, with the market watching to see if it can challenge the 51163/51274 resistance zone.
Bias: Bullish at highs
- Resistance: 30620 / 30784
- Support: 30231 / 30105
Despite overnight market anxieties over volatile Middle East geopolitics, tech stocks extended their strong run. NVIDIA led the sector higher, buoyed by news of the release of next-generation artificial intelligence (AI) computer chips.
Analyst View: NAS100 pushed above its record high of 30,500, with its recent ascending channel continuing to expand. While there is room to target the 30620/30784 resistance area, sharp upside momentum might be capped as investors adopt a wait-and-see approach ahead of the US jobs report and the fluid US-Iran situation.
Bias: Bullish at highs
- Resistance: 73040/73992
- Support: 69073/68153
Bitcoin price cracks lower as institutional investment in Bitcoin ETFs has been marked by a streak of sizable outflows amid geopolitical tensions, inflation concerns, and shifting Federal Reserve expectations.
Analyst View: BTC/USD pulled back sharply yesterday, recording its largest single-day drop since early April. It continued to edge closer to $70,000 during this morning’s session. The market is watching to see whether the downside extends further towards the 69073/68153 range and whether the April lows will become the next target.
Bias: Short-term bearish
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