What you need to know on Monday, May 31:
Market players are still willing to sell the greenback on upward moves, suggesting the American currency will remain on the backfoot these days. The greenback keeps moving alongside US government bond yields, which reflect US inflation expectations.
Upbeat US data provided temporal support to the USD, on Friday, alongside headlines indicating President Joe Biden would announce a$ 6 trillion spending program. However, the same news boosted stocks, putting a cap on the dollar’s advance.
The EUR/USD pair settled around 1.2200 while GBP/USD closed around 1.4190, both near their highs.
In Europe, European Central Bank policymakers have been utterly cautious on their comments, indicating that they will maintain their ultra-loose monetary policy amid continued uncertainty and low inflation. Contrary to what happens in the US, where inflationary pressures mount and policymakers are open to discuss tightening.
The UK’s massive immunization campaign led to lifting restrictions in the kingdom by steps, with the last one scheduled for June 21. All measures are scheduled to be lifted, and free international travel should resume that day. However, the increasing number of new contagions due to the mentioned strain puts at doubt easing restrictions in three weeks.
Among commodity-linked currencies, the aussie was the weakest, and the CAD remained the strongest. AUD/USD is struggling to retain the 0.7700 threshold while USD/CAD trades below 1.2100. The USD/JPY pair surged to 110.20 but settled below the 110.00 level.
Wall Street managed to post modest gains on Friday, ending the week up. US Treasury yields recovered, but ended the week little changed and at the lower end of their recent range.
Gold continues to outperform. The bright metal settled above 1,900 and is poised to extend its advance. Crude oil prices eased on Friday, with WTI ending the week at $ 66.60 a barrel.
XRP price risk builds to the downside, $0.65 in the crosshairs
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD clings to recovery gains above 1.3200, as BoE looms
GBP/USD sustains the recovery above 1.3200 in early Europe on Thursday, having found buyers near 1.3150. A fresh US Dollar pullback and a rebound in risk sentiment offer support to the pair ahead of the BoE policy announcements.
EUR/USD holds higher ground above 1.1100, focus shifts to ECB-speak
EUR/USD is holding higher ground above 1.1100 in the early European session on Thursday. The pair is underpinned by the renewed US Dollar retreat, as traders digest the Fed's dovish outlook, bracing for ECB-speak for fresh trading incentives. US data are also eyed.
Gold price jumps back closer to all-time peak, $2,600 remains in sight amid fresh USD weakness
Gold price regains positive traction following the previous day's pullback from the all-time peak and builds on its steady intraday ascent heading into the European session on Thursday.
BoE expected to keep interest rate unchanged at 5% as price pressures persist
After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut
Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.