WITH EYES ON FEDSPEAK AND US RETAIL SALES FIGURES, THE US DOLLAR ESTABLISHES ITSELF

The US Dollar struggled to find demand on Monday due to the uptick in a two-day winning streak for the US Dollar Index (DXY). The DXY maintains its position early on Tuesday as investors wait for US data on April retail sales. The first quarter's Gross Domestic Product growth figures will be released by Eurostat during the European session, and the ZEW Survey - Economic Sentiment for the Euro area and Germany will also be watched for further signs of momentum. Market participants will continue to closely monitor central bank officials' remarks.

Futures on US market indexes trade slightly lower on the day, and the benchmark yield on US Treasury bonds for ten years remains below 3.5%. Retail Sales in the US are anticipated to increase 0.7% in April after declining 0.6% in March. At 1900 GMT, US President Joe Biden will have a meeting with Speaker of the House Kevin McCarthy of the Republican Party and three other prominent congressional figures.

The UK's Office for National Statistics (ONS) released statistics early on Tuesday that showed the ILO Unemployment Rate increased slightly to 3.9% in the three months leading up to March. This reading exceeded the market's forecast of 3.8%. Average Earnings Including Bonus, which measures salary inflation during the same time at 5.8%, experts' expectations of 5.1%. Following the conflicting jobs report, strong selling pressure was applied to the pound, and below 1.2500.

On Monday, the EUR/USD ended the day below 1.0900. Early on Tuesday, the two are quite quiet. MNI stated on Monday that the European Central Bank (ECB) was most likely to increase key rates once or twice more during this tightening cycle, citing Eurosystem sources.

The USD/JPY pair increased to its highest level in more than ten days above 136.00 on Monday, helped by rising US Treasury bond yields. The pair was last seen trading a few pip below 136.00 early on Tuesday, when have entered a consolidation phase.

Monday saw a dramatic decline in USD/CAD, 1.3500 as rising crude oil prices supported the Canadian Dollar, which is a commodity-sensitive currency. The Consumer Price Index data for April, which is anticipated to increase 4.1% compared to 4.3% in March, will be released by Statistics Canada later in the day.

The Westpac Consumer Confidence Index for Australia decreased to -7.9% in May from 9.4% in March, according to statistics released during Asian trading hours. After failing to consolidate above that price on Monday, the AUD/USD is pressure today and trades in the red below 0.6700.

After a calm Asian session, the price of gold began to decline in the European morning and fell around $2,000 level.

On Monday, the price of bitcoin is $28,000 but lost its upward momentum before reaching that mark. BTC/USD is on Tuesday and trades close to $27,000. On Monday, Ethereum showed marginal improvements. In the early hours of the morning in Europe, ETH/USD oscillates in a narrow channel just above $1,800.