Here is what you need to know on Monday, June 1:
The US dollar took a beating across the board starting out a new month/ week, as markets breathed a sigh of relief on the US’ softer stance on China. On Friday, US President Donald Trump left the trade deal intact with China while withdrawing Hong Kong’s special status against Beijing’s national security legislation for HK.
The dollar weakness was also backed by the escalating riots in the US cities, with curfews imposed on major cities, as demonstrators ignore warnings from President Trump. This comes in light of the protestors venting fury at the death of George Floyd.
The Asian stock markets reached three-month highs amid optimism over the global economic re-openings and de-escalating US-China tensions. Most majors rallied on broad dollar weakness, with AUD/USD outperforming at four-month highs just shy of the 0.6750 level. An unexpected expansion in the Chinese Caixin Manufacturing PMI boosted the sentiment further in the commodity-currencies.
USD/JPY was pressured by the ongoing weakness in the greenback while the rally in Treasury yields and a bounce in S&P 500 futures failed to impress the bulls. EUR/USD headed back to two-month highs of 1.1146 while GBP/USD traded firmer but failed to resist above 1.2400 amid Brexit jitters. The Brexit talks between the UK and EU are set to begin Tuesday.
Monday’s economic calendar is eventful despite the thin market conditions, with most major European markets closed in observance of Whit Monday. Of relevance remains the Euro area and UK final Manufacturing PMI reports. The US ISM Manufacturing PMI for May will steal the show in the NA session.
Gold prices traded with sizeable gains around $1,740, looking to regain the 1750 mark. WTI oil corrected lower to test the 35 level.
Cryptocurrencies consolidated Sunday’s rally, with Bitcoin holding above $9,500. Cardano extended the bullish move above $0.08, with eyes on $0.10.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.