Here is what you need to know on Monday, May 29:
Following the choppy action witnessed ahead of the weekend, financial markets stay relatively calm early Monday amid thin trading conditions. UK markets are closed due to the Spring Bank Holiday and American traders will be enjoying a long weekend on Memorial Day. Later in the week, several high-tier data releases, including European inflation figures and the US jobs report, will likely ramp up volatility.
Over the weekend, US President Joe Biden and Republican House Speaker Kevin McCarthy reached an agreement to temporarily suspend the debt-limit to avoid a US debt default. The House of Representatives and Senate still need to approve the deal, which will suspend the $31.4 trillion debt-ceiling until January 1, 2025, in coming days. The market reaction to this development, however, is likely to be observed early Tuesday when US stock index futures and US bond markets return to action.
In the meantime, the US Dollar Index (DXY) rose 1% last week and registered gains for the third straight week. Early Monday, the DXY fluctuates in a tight channel at around 104.00.
EUR/USD managed to shake off the bearish pressure on Friday but still ended up losing more than 100 pips on a weekly basis. The pair edges slightly higher in the European morning and trades below 1.0750.
GBP/USD seems to have gone into a consolidation phase at around 1.2350 at the beginning of the week following last week's slide.
USD/JPY added nearly 300 pips last week and registered its highest weekly close since October above 140.00. The pair moves up and down in a narrow band near 140.50 in the European morning. In the early Asian session on Tuesday, April Unemployment data from Japan will be looked upon for fresh impetus.
Gold price fell sharply last week and touched its weakest level in over two months below $1,940. XAU/USD struggles to gather recovery momentum early Monday and continues to trade below $1,950.
Bitcoin rose nearly 5% on Sunday and broke out of the two-week-old trading channel. BTC/USD, however, lost its traction after meeting resistance at $28,500 early Monday and retreated below $28,000. Following a quiet start to the weekend, Ethereum gathered bullish momentum and advanced to a fresh three-week high above $1,900 on Sunday before staging a technical correction on Monday.
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
Gold price approaches $3,300 mark amid persistent safe-haven demand
Gold price continues scaling new record highs through the Asian session on Wednesday and has now moved well within striking distance of the $3,300 round-figure mark. Persistent worries about the escalating US-China trade war and US recession fears amid the ongoing US tariff chaos continue to boost demand for gold.
EUR/USD holds firm above 1.1350 amid renewed US Dollar weakness
EUR/USD is storngly bid above 1.1350 in European trading on Wednesday. The pair draws support from a fresh round of selling in the US Dollar amid persistent fears over US-China trade war and a lack of progress on EU-US trade talks. US consumer data and Powell speech are in focus.
GBP/USD trades at fresh 2025-high above 1.3250 after UK CPI data
GBP/USD builds on its six-day winning streak and trades at its highest level since October above 1.3250 in the European session on Wednesday. The data from the UK showed that the annual CPI inflation softened to 2.6% in March from 2.8% in February but had little impact on Pound Sterling.
Exchange inflows surge as XRP slides, what comes next?
Ripple corrected along with other major digital assets, including Bitcoin and Ethereum, and traded at $2.08 at the time of writing on Wednesday. The drawdown cut across the crypto market, causing the total capitalization to drop 3.2% to $2.736 trillion.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.