USD Slides Broadly as June Trading Begins

The US dollar opened June trading with broad-based weakness, declining against all major currencies as traders repositioned following the month-end flows. The greenback's slide reflects growing concerns about US economic momentum and expectations for Federal Reserve rate cuts totaling 53 basis points by year-end. EURUSD gained 0.4% to test 1.0580, while GBPUSD advanced 0.3% toward 1.2650. The dollar's weakness was particularly pronounced against commodity currencies, with AUDUSD jumping 0.5% to 0.6680 and USDCAD dropping to 1.3620. Technical indicators suggest the DXY dollar index has broken below key support at 104.50, opening the path for further declines toward 104.00. The move appears to be driven by position squaring after the dollar's recent rally, combined with month-end portfolio rebalancing flows. Traders should watch for any reversal signals as oversold conditions develop.