Session Recap: Majors consolidate after Friday’s swings

FXStreet (Córdoba) - The FX market has enjoyed a consolidation session Monday following Friday’s post-nonfarm payrolls volatility. The transition also occurs amid renewed jitters on escalating tensions in Ukraine and ahead of central banks action this week. The RBA, the ECB and the BoE will decide on monetary policy, with no major changes expected.

The EUR/USD and the GBP/USD have spent the day within narrow ranges around 1.3870 and 1.6870 respectively, while the dollar is on the defensive versus the yen amid mild risk aversion.

Currencies linked to commodities have regained ground versus the greenback following Friday’s drop, while gold is on the rise given its safe-haven status, having hit a 3-week high of $1,315/oz so far.

During the New York session attention will turn to the ISM non-manufacturing index, with expectations at 54.1 versus 53.1 in March.

Main headlines in Europe:

Further concern over weakening Chinese demand, quiet day for data

What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank

European Monetary Union Sentix Investor Confidence registered at 12.8, missing expectations (14.2) in May

European Monetary Union Producer Price Index (MoM) meets forecasts (-0.2%) in March

Gold given support by haven demand on Ukraine tensions

EU cuts Eurozone growth forecasts, warns on slow inflation