Forex Today: Markets stay quiet to start new week

Here is what you need to know on Monday, May 15:

The action in financial markets remain subdued at the beginning of the week and the US Dollar Index (DXY) consolidates last week's gains, whilc holding above 102.50. May Industrial Production data from the Eurozone will be featured in the European economic docket. Later in the day, the Federal Reserve Bank of New York will release the Empire State Manufacturing Index. In the early trading hours of the Asian session on Tuesday, Industrial Production and Retail Sales data from China will be looked upon for fresh impetus.

Late Friday, the University of Michigan reported that the Consumer Confidence Index dropped to 57.7 (preliminary) in May from 63.5 in April. Furthermore, the one-year inflation expectation component edged lower to 4.5% from 4.6% but the 5-year inflation expectation rose from 3.0% to 3.2%, the highest reading since 2011. Supported by the risk-averse market environment, the DXY gained nearly 1.5% last week and registered its highest weekly close since late March. Early Monday, US stock index futures are up around 0.3% and the benchmark 10-year US Treasury bond yield hold steady slightly below 3.5%. 

Earlier in the day, US President Joe Biden reportedly said that he expects to meet with Congressional leaders for the next round of debt limit negotiations on Tuesday.

EUR/USD broke below 1.0900 on Friday and lost nearly 100 pips on the day. The pair stages a technical correction and clings to small gains above 1.0850 early Monday.

GBP/USD lost nearly 200 pips last week and snapped a three-week winning streak. Although the pair edges higher in the European morning, it continues to trade below 1.2500.

USD/JPY gathered bullish momentum in the Asian session and touched its highest level in over 10 days at 136.26 before retreating toward 136.00 into the European session. 

Gold price closed the previous week virtually unchanged as buyers managed to defend the key level on Friday. XAU/USD holds its ground early Monday and trades in positive territory near $2,020.

Ahead of Tuesday's key data releases from China, AUD/USD stays bullish early Monday and continues to stretch higher toward 0.6700. Similarly, NZD/USD was last seen rising 0.5% on the day above 0.6200.

Following a quiet weekend, Bitcoin has gathered recovery momentum and advanced to the $24,500 area early Monday. Ethereum is up nearly 2% in the European morning, trading above $1,800.