Bitcoin’s 2nd biggest monthly ever!

“And the day came when the risk to remain tight in a bud was more painful than the risk it took to blossom.” – Anaïs Nin

FOREX

GBP/USD spikes above 1.4200 on renewed USD weakness

In the absence of significant fundamental drivers and macroeconomic data releases, month-end flows seem to be causing the greenback to weaken against its major rivals. (FX Street)

Dollar set for second consecutive monthly loss vs euro and pound

The dollar came under pressure on Monday and was heading for its second consecutive monthly loss against the euro and the pound, as traders assessed the impact of a surge in U.S. inflation before monthly jobs data later this week. (Reuters)

GOLD

Gold Price Forecast: XAU/USD holds steady above $1,900

The XAU/USD pair closed the fourth straight week in the positive territory on Friday and went into a consolidation phase on Monday. Although gold climbed to a daily high of $1,910 during the European trading hours, it struggled to gather momentum and remains on track to close the day with modest gains above $1,900. (FX Street)

Gold set for biggest monthly rise in 10 months on soft dollar, inflation risk

Gold firmed on Monday and was on course for its biggest monthly jump since July 2020, as the U.S. dollar headed for a second month of decline while growing inflationary pressures also lifted bullion’s appeal. (Reuters)

STOCKS

European stocks fall from record but post fourth monthly gain

European stocks slipped from record highs on Monday in subdued trading due to holidays in major markets, but optimism over a swift economic recovery helped the STOXX 600 index mark its fourth straight month of gains. (Reuters)
Japan’s Nikkei 225 falls almost 1%; China says its manufacturing activity grew at a slightly slower pace in May
Japan’s retail sales rose 12% in April as compared with a year earlier, according to government data released Monday .That was against a median market forecast for a 15.3% rise, according to Reuters. (CNBC)

CRYPTO

Bitcoin Eyes Second-Biggest Monthly Drop on Record

Bitcoin is on track for the second-biggest monthly percentage decline on record, despite bouncing from session lows in Asia. The monthly decline beats the 37% drop seen in November 2018 and is just short of the record 40% slide in September 2011, according to Bitstamp data. (CoinDesk) 

MORE HEADLINES

•    OECD raises growth forecasts on vaccine rollouts, U.S. stimulus
•    German inflation pushes further above ECB target in May
•    G7 to back minimum global corporate tax and support economy
•    Porsche, Piech families weigh direct stake in possible Porsche IPO
•    Bank of Israel holds key rate as inflation rises, economy recovers
•    Share price ‘pop’ in US IPOs falls by half

ANALYSIS

NFP: A good report may put a brighter spotlight on Fed’s tapering talk – Wells Fargo

“While we don't suspect all the labor supply issues worked themselves out in May, we believe the jobs' recovery got back on track. We forecast employers added 800K jobs during the month and the unemployment rate ticked down to 5.9%. We will also be paying extra close attention to any revisions to prior month's data in next week's release.”

“If employers added significantly fewer jobs than we forecast, it would seem the disconnect between the demand for and supply of labor needs a little more time to work out. A weak report could entrench expectations that tapering doesn't start until early 2022, despite the recent rise in inflation. Alternatively, big upward revisions to prior data or a solid gain in May employment, particularly if accompanied by a meaningful upward revision to April, may put a brighter spotlight on when the Fed may discuss and ultimately kick off tapering.”

CHART

Euro/Yen – Weekly Candlesticks
  

Source: GKFX Prime Metatrader 4 

EUR/JPY has broken above 133 as well as the April and September 2018 highs and a long term falling trendline on the weekly chart. - Prepared by Trading Writers*

CALENDAR

*Times in GMT

 
Source: FX Street Economic Calendar

Source

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/gold-price-forecast-xau-usd-holds-steady-above-1-900-202105311740
https://www.fxstreet.com/news/gbp-usd-spikes-above-14200-on-renewed-usd-weakness-202105311513
https://www.reuters.com/business/oecd-raises-growth-forecasts-vaccine-rollouts-us-stimulus-2021-05-31/
https://www.reuters.com/article/us-germany-economy-inflation/german-inflation-pushes-further-above-ecb-target-in-may-idUSKCN2DC13U
https://www.reuters.com/business/retail-consumer/exclusive-g7-back-minimum-global-corporate-tax-vow-keep-support-economy-draft-2021-05-31/
https://www.reuters.com/article/global-precious/precious-gold-set-for-biggest-monthly-rise-in-10-months-on-soft-dollar-inflation-risk-idUSL3N2NI2D7
https://www.reuters.com/article/europe-stocks/update-2-european-stocks-fall-from-record-but-post-fourth-monthly-gain-idUSL3N2NI1WT
https://www.reuters.com/world/china/dollar-near-2-month-high-vs-yen-chinese-yuan-scales-3-year-high-2021-05-31/
https://www.cnbc.com/2021/05/31/asia-markets-china-manufacturing-pmi-currencies-oil.html
https://www.ft.com/content/ffe2e371-cc9e-41cc-94d4-b6d3446b6ed7
https://www.fxstreet.com/news/nfp-a-good-report-may-put-a-brighter-spotlight-on-feds-tapering-talk-wells-fargo-202105311600