The EUR/GBP cross trades in negative territory near 0.8655 during the early European trading hours on Monday. The Euro (EUR) remains weak against the British Pound (GBP) following the upbeat German Retail Sales data.
Danske Research Team notes that EUR/USD ended last week around 1.1650 after a sharp drop in Oil prices, with US and Euro area yields both moving lower. They highlight upcoming United States (US) ISM Manufacturing Purchasing Managers' Index (PMI), labor data and the Euro area HICP as key drivers.
German Retail Sales, a key measure of consumer spending, declined again in April. The consumer spending measure dropped 0.3% month-on-month (MoM), according to official data released by Destatis, while it was expected to have declined 0.4%. In March, Retail Sales fell by 0.3% (revised from 2.0%)
Asian equities advance on Monday as technology shares extended gains amid continued enthusiasm for the artificial intelligence-driven rally. However, traders may adopt caution due to highly fluid developments surrounding United States (US)-Iran peace negotiations.
US President Donald Trump said that Iran really wants to make a deal, and it will be a good one for the United States (US) and those that are with us. His comments came after US Central Command (Centcom) stated that it struck targets in Iran over the weekend.
AUD/JPY extends its gains for the third successive day, trading around 114.60 during the Asian hours on Monday. The currency cross holds its ground as a wave of mixed economic data from China, Australia, and Japan shaped market sentiment.
China's RatingDog Manufacturing Purchasing Managers' Index (PMI) declines to 51.8 in May from 52.2 in April the latest data published by RatingDog showed on Monday.
West Texas Intermediate (WTI) oil price gains ground after three days of losses, trading around $88.80 per barrel during the Asian hours on Monday. WTI price rises over 2% as supply concerns intensify following Israel's orders for troops to move further into Lebanon.
Former Federal Reserve (Fed) Chair Jerome Powell said the US central bank would damage public trust that’s required to support a strong and stable economy if any president were free to dismiss Fed officials over policy disagreements, Bloomberg reported on Monday.
US President Donald Trump has sought to change several terms of a proposal to end the US-Israel war on Iran, the BBC reported on Sunday. The changes are related to the Strait of Hormuz and the removal of highly enriched uranium.
China’s official Manufacturing Purchasing Managers' Index (PMI) eased to 50.0 in May, compared to 50.3 in the previous reading. The reading came in line with the market consensus of 50.0 in the reported month.