Here are the details of the economic calendar for June 2:

Great Britain published its data on the credit market yesterday, which came out worse than expected. As a result, the pound weakened further.

The volume of consumer lending declined by 0.4 billion pounds against the forecasted growth of 0.5 billion pounds. This is not the best signal for economic recovery, given that consumer lending has been contracting for the 8th consecutive month.

In Europe, data on producer prices were published, which surged from 4.3% to 7.6%, while expecting 7.0% only. The data is very good, but the growth in producer prices increases the risks of further inflation growth, and this develops even greater fears about possible actions from the European Central Bank, which investors are so much afraid of.

Analysis of trading charts from June 3:

The EUR/USD pair showed quite high activity yesterday, where market participants continued to increase the volume of short positions (sell positions) from the resistance of 1.2230/1.2245, which eventually led to reaching the support area of support 1.2160 from May 19 and 21.

The trading recommendation on June 2 considered selling positions, indicating a possible weakening of the euro towards the coordinates 1.2180-1.2160, which eventually brought us a profit.

The GBP/USD pair continues to follow the natural basis of the side channel 1.4100/1.4240, consistently developing the set borders.

It can be recalled that the side channel has been taking place for the third week in a row, where it is possible to easily earn profit by following a simple rebound tactic.

The trading recommendation on June 3 just considered the rebound tactic, indicating a sell position in the direction of 1.4100.

Trading recommendation for EUR/USD and GBP/USD on June 3, 2021

Today, ADP will release the May level of US employment in the private sector, from which quite strong growth is expected, namely around 650 thousand. This is all in anticipation of the publication of the report of the US Department of Labor, which may support the US dollar.

12:15 Universal time - ADP US employment report

Fifteen minutes after the ADP report, weekly unemployment claims in America are expected to decline.

Details:

• The volume of initial applications for benefits may decline from 406 thousand to 395 thousand.
• The volume of repeated applications for benefits may decline from 3 642 thousand to 3 615 thousand.

Applications reflect the number of citizens who are not currently working and receiving unemployment benefits. This indicator is considered the state of the labor market, where the growth of the indicator negatively affects the level of consumption and economic growth.

To simply put it, an increase in the number of applications leads to a weakening of the national currency, while a decrease leads to strengthening.

Looking at the EUR/USD trading chart, it shows that the pullback from the pivot point 1.2160 was almost won back during the start of the European session. The natural basis associated with the area of 1.2160 still puts pressure on sellers, which is why traders are not in a hurry to move into short positions ahead of time, but wait for a clear breakdown of the control level.

If the price does not hold below the level of 1.2150, the chance of the euro's reversal will increase.

As for the trading chart of the GBP/USD, it can be seen that the cyclicity in the side channel is still relevant among traders. The breakdown of the lower border of 1.4100 returned the quote to the average level of 1.4172, where stagnation occurred.

We can assume that the rebound trading strategy will remain as the main one, where the quote needs to hold above the range of 1.4190-1.4200 for an upward reversal.

It is worth considering that the longer the quote remains within the closed amplitude, the stronger the exit from the side channel will be.

Therefore, the strategy for the breakdown of a particular border is always relevant and considered in trading.