Today is expected to be a relatively busy day for the euro. The final inflation data for May in Spain and France will be published in the first half of the day. In addition, the ECB President Draghi plans to speak after the publication of data on inflation in Spain. Investors are concerned primarily with whether Draghi will strike a blow at the euro with his comments, thus reversing the last Thursday’s growth of the single currency.

One of the main drivers, and perhaps the most important one, for traders this week will be the next release of labor statistics from the United States this Friday. NonFarm Payrolls, Average Hourly Earnings, and Unemployment Rate will have a significant impact on the behavior of the US currency. NonFarm Payrolls Last data: 263K Consensus forecast: 196K

The economic calendar of the first trading day of the new week looks pretty dense in the Asian session. Production figures of Australia and Japan provide the direction of the market at the moment. The smallest impact was made by Japanese investment data in the 1st quarter and the gross operating profit of Australian companies. In Australia, the AIG Manufacturing PMI fell from 54.8 to 52.7 in May. The production index decreased by 6.9 points to 51.2, while the index of new orders fell by 3.3 points to 52.3.

The trade war between China and the United States, in the light of its next escalation, prompts investors to once again seek refuge in safe assets. The confrontation of the main economies of the world takes a new turn, after early this morning, the Deputy Minister of Foreign Affairs of China called the American sanctions and duties against China as economic chauvinism and psychological terror. In the Forex market, one should expect increased volatility in the main trading pairs.

This morning, the EURUSD pair was noted at the maximum value from the middle of this month - 1.1214. This reaction is due to the defeat of the populist and far-right parties in the past elections to the European Parliament, contrary to forecasts. According to the results of the elections, 80 percent of the seats in Bruxelles is left to the pro-European parties, which will support the single European currency.

The American currency shows stability, despite another exacerbation of the trade war with China. We can’t say the same about GBP. The prospects for the British pound do not look very optimistic. Today, for the British currency is expected to be quite a busy day in the economic calendar. The data on CBI industrial trends for May will be released in the second half of the day.

The Australian dollar began a new trading week in very high spirits after the results of the local parliamentary elections became known. The instability of the GBP and EUR, in the run-up to the elections to the European Parliament, may provide indirect support for the Australian currency, both today and during this week. As it became known, the current Australian Prime Minister Scott Morrison and his conservative coalition won the last parliamentary elections yesterday, which was an unexpected result for experts who predicted the victory of the opposition Labor Party.

The EURUSD pair is losing ground for the second day in a row, mainly due to the threat of Italy to break EU fiscal rules. Matteo Salvini, the leader of the right-wing League of Italy party, said that the government could soon increase its debt level, disregarding EU rules providing for a debt size not exceeding 3%. Such a violation of EU fiscal rules can put a lot of pressure on the single European currency.