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…