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
AUD/USD: Next on the downside comes 0.6500
Further gains in the US Dollar kept the price action in commodities and the risk complex depressed on Tuesday, motivating AUD/USD to come close to the rea of the November low near 0.6500.
EUR/USD pierces 1.06, finds lowest bids in a year
EUR/USD trimmed further into low the side on Tuesday, shedding another third of a percent. Fiber briefly tested below 1.0600 during the day’s market session, and the pair is poised for further losses after a rapid seven-week decline from multi-month highs set just above 1.1200 in September.
Gold struggles to retain the $2,600 mark
Following the early breakdown of the key $2,600 mark, prices of Gold now manages to regain some composure and reclaim the $2,600 level and beyond amidst the persistent move higher in the US Dollar and the rebound in US yields.
Ripple could rally 50% following renewed investor interest
Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token. XRP could rally nearly 50% if it sustains a firm close above the neckline resistance of an inverted head and shoulders pattern.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.