Global financial markets opened the week on a cautious note as investors turned their attention to the latest round of trade negotiations between the United States and China, scheduled to take place Monday in London. Alongside this, the European economic calendar highlights the release of the Sentix Investor Confidence Index for June, while later in the week, the United States will publish wholesale inventory data for April.
The U.S. dollar weakened broadly across major currencies on Monday morning, reflecting subdued risk appetite and mixed economic signals. The greenback recorded its sharpest losses against the New Zealand dollar, while also falling against the euro, British pound, Japanese yen, Australian dollar, and Swiss franc.
On Friday, the U.S. Bureau of Labor Statistics reported that nonfarm payrolls increased by 139,000 in May, slightly surpassing the forecast of 130,000. The unemployment rate remained steady at 4.2%, in line with market expectations. However, revisions to previous data showed that March and April job gains were lower than initially reported, with a combined downward adjustment of 95,000. Although the dollar index briefly climbed after the jobs report, it lost momentum early Monday and traded just below the 99.00 level in the European session.
U.S. equity futures also slipped between 0.2% and 0.25%, underscoring investor caution amid ongoing macroeconomic uncertainty.
In Europe, European Central Bank President Christine Lagarde reaffirmed the ECB’s commitment to maintaining restrictive interest rates. Over the weekend, Lagarde stated that it remains essential to hold rates at elevated levels to achieve lasting price stability. “There is still a long way to go to squeeze inflation out of the economy,” she warned. Following a 0.4% drop on Friday, the euro recovered modestly against the dollar on Monday, holding above the 1.1400 level.
In Asia, China released stronger-than-expected trade figures for May. The country’s trade surplus expanded to $103.22 billion, up from $96.18 billion in April. Exports rose 4.8% year-on-year, while imports declined by 3.4%. Meanwhile, consumer inflation softened, with the consumer price index falling 0.2% month-on-month. The Australian dollar gained ground in response, with AUD/USD remaining above 0.6500 in early trading.
The British pound also rebounded on Monday, trading above 1.3550 after slipping around 0.3% on Friday. Investors are awaiting labor market data from the U.K., scheduled for release on Tuesday.
In Japan, Prime Minister Shigeru Ishiba commented on the country’s shifting economic landscape, indicating that rising interest rates may increase government borrowing costs and complicate fiscal planning. As a result, the yen strengthened, pushing USD/JPY lower toward the 144.00 mark following two days of gains.
Gold prices, meanwhile, came under pressure late last week, dropping more than 1% on Friday and briefly falling below $3,300 per ounce. In early European trading on Monday, gold stabilized just above the $3,300 threshold as investors sought safety amid global uncertainties.
Related Topic:
US Dollar Weakens, Mexican Peso Gains Ground
Hyderabad Businessman Loses ₹328 Crore in Forex Trading Scam
