Forex Today: Soft start to a busy week

Valeria Bednarik FXStreet

What you need to take care of on Tuesday, May 31:

The greenback remained under pressure in the first trading day of the week, falling against most major rivals. The USD/JPY pair, however, edged higher amid the better tone of stocks markets.

The better mood was triggered by China, as Shanghai announced it would start lifting covid-related restrictions this week as planned. Businesses will return to normal after over a month of lockdown. Asian and European indexes advanced, while US markets were closed due to the celebration of Memorial Day.

EU representatives are still discussing the sixth package of sanctions on Russia, with rumours hinting at a potential announcement this week, that would not include banning oil imports coming from pipelines.

The EUR/USD pair managed to reach a fresh May high of 1.0786, despite German inflation reaching fresh multi-decade highs in May, according to preliminary estimates. The EU will publish its own estimates on Tuesday. GBP/USD settled around 1.2650.

The Canadian dollar was among the top performers. USD/CAD trades around 1.2660, helped by higher oil prices, as WTI futures trade at $117.00 a barrel. AUD/USD is near 0.7200, despite gold remained lifeless. The bright metal currently changes hands at $1,855 a troy ounce.

Little happened during US trading hours amid the aforementioned holiday. However, the week will be fulfilled with growth, employment and inflation data from major economies. EU inflation, AUS GDP and the US Nonfarm Payrolls report are among the most relevant.

Dogecoin price is positioned for a charge back to $0.11

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD off highs, back to 1.1850

EUR/USD loses some upside momentum, returning to the 1.1850 region amid humble losses. The pair’s slight decline comes against the backdrop of a marginal advance in the US Dollar as investors continue to assess the latest US CPI readings.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.