What to watch for on Tuesday, May 31:
The dollar remained under pressure on the first trading day of the week, falling against most major rivals. However, the USD/JPY pair rose amid better tone in equity markets.
The better mood was brought about by China, as Shanghai announced it would begin lifting shack-related restrictions this week, as planned. Businesses will return to normal after more than a month of lockdown. Asian and European indices advanced, while US markets remained closed due to the Memorial Day celebration.
EU representatives continue to discuss the sixth package of sanctions on Russia, with rumors pointing to a possible announcement this week, which would not include a ban on oil imports from pipelines.
The EUR/USD pair managed to reach a new May high at 1.0786, despite German inflation hitting new multi-decade highs in May, according to preliminary estimates. The EU will publish its own estimates on Tuesday. The GBP/USD pair was around 1.2650.
The Canadian dollar was one of the best performers. USD/CAD is trading around 1,660, helped by rising oil prices as WTI futures trade at $117.00 a barrel. AUD/USD is nearing 0.7200, even though gold remains lifeless. The shiny metal is currently trading at $1,855 a troy ounce.
Little happened during US trading hours amid the aforementioned holiday. However, the week will be completed with data on growth, employment and inflation from the main economies. EU inflation, US GDP and the US Non-Farm Payrolls report are some of the most relevant.
Source: Fx Street
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