The dollar fell against most major currencies on Monday, pressured by gains in the euro, after German Chancellor Angela Merkel said the single currency was “too weak”.
EUR/USD soared to a six-month high of $1.1263, as investors believed that Merkel’s comments would pressure ECB policymakers to consider tapering the central bank’s expansive monetary stimulus package, which includes very low interest rates.
Turmoil on the U.S. political stage is still leading investors to doubt whether President Trump would be able to deliver on his pro-growth agenda to boost the economy.
In the week ahead, investors will be looking at Wednesday’s Federal Reserve meeting minutes for fresh indications on the possible timing of the next U.S. rate hike.
Today, the euro zone is to publish survey data on private sector business activity, the Ifo Institute is to report on German business climate and Bank of England Governor Mark Carney and several other officials are to testify on inflation and the economic outlook before Parliament's Treasury Committee.
Later in the day, Canada is to release data on wholesale sales and the U.S. is to publish a report on new home sales.
The euro jumped to fresh a six-month highs against the dollar on Monday, following Merkel’s comments that the single currency was “too weak”.
Investors believe that Merkel’s comments along with the recent positive economic data from Eurozone, would pressure ECB policymakers to consider tapering the central bank’s expansive monetary stimulus package, which includes ultra-low interest rates.
Today, euro zone data on private sector business activity is due, together with the Ifo Institute German business climate report. Later in the day, the focus will be shifted towards a report on new home sales.
Pivot: 1.1215 Support: 1.1215 1.118 1.116 Resistance: 1.1265 1.13 1.1325 Scenario 1: long positions above 1.1215 with targets at 1.1265 & 1.1300 in extension. Scenario 2: below 1.1215 look for further downside with 1.1180 & 1.1160 as targets. Comment: the RSI is mixed with a bullish bias. 
Concerns over political turmoil in the U.S. continue to support safe haven demand, providing a boost to the precious metal on Monday, and bringing it to the highs of last week.
Gold continued to gain in Asia on Tuesday after a deadly explosion at a concert venue in Manchester was said to be a terror attack with reports suggesting that the government is rescheduling the June 8 polls for parliament.
Gold traders are now shifting their attention towards Wednesday’s FOMC minutes, for any clues on the future monetary policy steps of the Fed.
Pivot: 1257.5 Support: 1257.5 1255 1251.5 Resistance: 1265 1268 1270 Scenario 1: long positions above 1257.50 with targets at 1265.00 & 1268.00 in extension. Scenario 2: below 1257.50 look for further downside with 1255.00 & 1251.50 as targets. Comment: the RSI is mixed with a bullish bias. 
Oil prices jumped to highs on Monday, as expectations soared for an extension of the supply-cut agreement, after Iraqi Oil Minister Jabar Ali al-Luaibi said on Monday he agreed with Saudi Arabia on the need to extend OPEC crude output cuts for a further nine months.
Saudi Energy Minister Khalid al-Falih offset market worries that OPEC members would not reach an agreement on an output cut extension on Thursday, after he said that he did not expect any resistance within OPEC to extending oil output cuts until March 2018
Oil ministers from the Organization of Petroleum Exporting Countries and other major producing countries will meet in Vienna on May 25 to conclude whether to extend their current production agreement beyond a June 30-deadline.
Pivot: 50.48 Support: 50.48 50.15 49.55 Resistance: 51.7 52 52.3 Scenario 1: long positions above 50.48 with targets at 51.70 & 52.00 in extension. Scenario 2: below 50.48 look for further downside with 50.15 & 49.55 as targets. Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited. 
The main U.S. stock indices were higher on Monday, boosted by technology shares and by defense companies, which gained after the United States and Saudi Arabia signed a multi-billion dollar arms deal.
Trump visited Saudi Arabia over the weekend and sealed $110 billion in deals. Riyadh will buy U.S. arms to help it counter Iran, with options running as high as $350 billion over 10 years.
The S&P industrials index rose 0.7 percent and the S&P 500 posted a third straight day of gains, further recovering from last week's drop that was tied to concerns regarding U.S. President Donald Trump's domestic agenda.
In the week ahead, investors will be looking at Wednesday’s Federal Reserve meeting minutes for fresh indications on the possible timing of the next U.S. rate hike.
Pivot: 2385 Support: 2385 2379 2375 Resistance: 2394 2400.5 2404 Scenario 1: long positions above 2385.00 with targets at 2394.00 & 2400.50 in extension. Scenario 2: below 2385.00 look for further downside with 2379.00 & 2375.00 as targets. Comment: the RSI is supported by a rising trend line. Prices broke above a symmetrical triangle.