The market remains calm, and non-farm and financial reports are coming this week

The main currency pairs traded in a relatively narrow range early on Monday after a high fluctuation last week. On Monday, the U.S. Economic Calendar will release the Dallas Fed's April manufacturing business index. Key growth and employment data for major economies will be closely watched later this week.

The US dollar index rose slightly last week, ending its three consecutive weeks of decline. In the early European session, the US dollar index rose slightly to 99.80, while U.S. stock index futures traded in the negative territory. The market remains cautious about opening this week due to the lack of new progress pointing to easing U.S.-China trade conflict.

Last weekend, the Financial Times reported that the Port of Los Angeles, the main entry route for Chinese goods, is expected to see a third of the number of people scheduled to arrive in the week starting May 4 than a year ago. Meanwhile, a Chinese Foreign Ministry spokesman said on Monday that they have not yet engaged in any trade negotiations with the United States.

Basic foreign exchange market trends:

Euro/USD is difficult to gain traction, and after a slight decline at the close of the previous week, it fell around 1.1350. Reuters reported on Saturday that ECB policymakers are increasingly confident that key interest rates will be lowered again in June, but they see no reason to consider a sharp 50 basis point cut.

The GBP/USD fluctuates in a narrow range around 1.3300, starting on Monday.

The US dollar/yen rose more than 0.7% on Friday, climbing for the first time in more than a weekRised above 144.00 and then corrected lower on the weekend. The pair held their positions on Monday and traded easily above 143.50. Atsushi Mimura, deputy secretary of international affairs and senior foreign exchange official in Japan's finance ministry, said earlier on Monday that media reports that U.S. Treasury Secretary Scott Bessent said that a strengthening yen is preferable, which is "totally untrue."

Bulle market fundamentals:

As risk sentiment slightly improves, gold prices fell back to around $3,295, below its all-time high of $3,500.

Oil prices rose slightly as concerns about a recent global economic slowdown and OPEC's plan to increase production has put pressure on the market. Brent crude oil rose 25 cents to $67.20 per barrel; U.S. crude oil rose 30 cents to $63.32 per barrel.

Analysis of major currency trends:

Euro: Although 4HMACD has lost its downward momentum, the EUR/USD correction from the short-term top 1.1572 may continue to decline. Nevertheless, strong support should be seen from the 38.2% retracement level of 1.0176 to 1.1572 at 1.1039 to curb downside space. On the bright side, breaking through 1.1572 will resume a larger upward trend.

GBP: GBP/USD correction from the short-term top 1.3422 may continue to decline. But the downside space should be bound by the 38.2% retracement level of 1.2917 from 1.2099 to 1.3422. On the positive side, a firm breakthrough of 1.3433 will resume a larger upward trend.

JPY: The US dollar/JPY is expected to rise further, with the small support level of 142.26 remaining unchanged. However, as long as the 38.2% retracement level of 147.12 from 158.86 to 139.87 is established, the near-term outlook will remain bearish. On the downside, a breakthrough of 142.26 will indicate that the short-term bottom rebound from 139.87 has been completed, which is a correction measure. In this case, 139.87 should be retested next.

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