Dollar declined in European trade for another session, plumbing one-week trough off 11-week highs after Congress passed the bill to raise the US debt ceiling. 

Dollar is on track for the first weekly loss in a month following more bearish remarks by Fed officials, which caused a reversal in pricing for US interest rates in June. 

Now investors await a batch of crucial US payrolls data to better gauge the path ahead for monetary policies.

The Index

The dollar index fell 0.2% to 103.38, the lowest in a week, with a session-high at 103.59, after losing 0.7% yesterday, the largest loss since May 3 on profit-taking off 11-week highs at 104.69 and amid improving risk appetite. 

Recent data showed US manufacturing sector tumbled in May, renewing concerns about US recession during the second quarter.

The dollar index remains down nearly 0.8% this week, on track for the first weekly loss in a month. 

US Debt Ceiling 

Congress passed the bill raising the US debt ceiling,  this week with all that's left now is President Joe Biden's signature.

Such a bill will raise the debt ceiling until January 1st, 2025, and will put aside such dangerous political risks for until after the 2024 presidential elections.

Fed Remarks

Federal Reserve member Philip Jefferson said it's likely the Fed will maintain rates unchanged at the June meeting.

Philadelphia Fed President Philip Jefferson said he prefers for the Federal Reserve to stop raising interest rates at the next meeting as rates approach neutrality.

Such remarks caused pricing for a 0.25% Fed rate hike in June to collapse from 65% to just 23%. 

US Jobs

Now investors await crucial US jobs data to better gauge the path ahead for monetary policies. 

Silver prices rose in European trade on Friday for the fourth straight session, hitting two-week highs and on track for the first weekly profit in a month as the dollar declined.

Dollar's decline comes ahead of US payrolls data, expected to provide fresh pricing for US interest rates in June. 

Silver Prices Today

Silver prices rose 0.6% to $24.02 an ounce, the highest since May 16, with a session-low at $23.79.

Silver prices rose 1.5% yesterday, the third profit in a row as most dollar-denominated commodity futures gain ground. 

Silver is up 3% so far this week, on track for the first weekly profit in a month away from recent lows and as dollar drops. 

The Dollar

The dollar index fell 0.2% on Friday, sharpening losses for another session and plumbing one-week lows at 103.38 against a basket of major rivals. 

Dollar is also backing off 11-week highs as risk appetite improves in the markets after the passage of the bill raising US debt ceiling on Congress.

Fed Remarks and Rates

A batch of recent remarks by several Fed officials were rather bearish with signals of ceasing rate hikes in June. 

Such remarks caused pricing for a 0.25% Fed rate hike in June to collapse from 65% to just 23%. 

US Jobs

Now investors await crucial US jobs data to better gauge the path ahead for monetary policies. 

Euro rose in European trade against a basket of major rivals, recovering for a second session against dollar and hitting one-week high on bullish remarks from ECB President Christine Lagarde, which bolstered the case for a 0.25% rate hike in Europe at the June ECB meeting. 

Dollar tumbled for a second session away from 11-week highs after Congress passed the bill raising the US debt ceiling, with all that's left now is President Joe Biden's signature.

Now investors await US jobs data for May, crucial for gauging the probable path ahead for US interest rates in June. 

EUR/USD rose 0.2% to 1.0779, the highest since May 24, with a session-low at 1.0756. 

Euro rose 0.7% on Thursday, the largest profit since April 12 away from two-month lows hit earlier at 1.0635, following bullish remarks by ECB President Christine Lagarde. 

Lagarde

European Central Bank President Lagarde said that inflation remains too high in the euro zone and it's likely to stay so for a long time.

Lagarde added there's no proof that core inflation has reached its peak, noting there's still room for raising interest rates to limit consumer prices. 

European Rates

Such remarks boosted chance of a 0.25% interest rate hike at the June 15 meeting, and boosted chance of another rate hike by the ECB in July. 

The Dollar

The dollar index fell 0.2% on Friday for another session away from 11-week high at 104.69, marking a week low at 103.40 against a basket of major rivals. 

Dollar is losing ground amid improving risk appetite after Congress pass the bill raising the US debt ceiling level until early 2025. 

Fed Remarks

Several remarks from Fed officials this week were more bearish than expected, in turn hurting prospects of a US rate hike in June. 

US Rates

Currently, there's only a 23% chance of a US Fed rate hike at the next meeting, which chances for no change in policies stand at 77%. 

Oil prices rose on Thursday with the biggest daily profit in two weeks ahead of OPEC+ meeting on Sunday, while US House of Representatives' vote in favor of raising US debt ceiling overcame the impact of higher crude inventories. 

Both crudes recouped recent losses after US House of Representatives passed as bill to raise the US debt ceiling, with the bill now moving to the Senate. 

Markets now focus on the June 4th meeting held by OPEC and allies including Russia. 

The Energy Information Administration reported an increase of 4.5 million barrels last week to 459.7 million barrels, while analysts expected a drop of 1.4 million barrels.

Gasoline stocks fell 200 thousand units to 216.1 million barrels, while distillate stocks rose a million barrels to 106.7 million barrels.

On trading, US crude futures due in July rose $2.01, or 3% to $70.10 a barrel, marking the biggest daily profit since May 5th. 

Brent futures rose 2.3%, or $1.68 to $74.28 a barrel, the biggest daily profit since May 17.