US labour report surprised with a 2.5 million non-farm payroll gain for May versus expected -7.5 million. As a result, jobless rate slipped to 13.3% from previous 14.7%. The unexpected jobs recovery in May lifted equity indices to new recent highs. The reaction in the greenback was seemingly subdued, trapped in opposing forces of stronger risk-appetite ( USD-negative) and potential paring back of expectations for the Fed to do more (USD-positive). As a result, the DXY remained above 96.60-support into the new week.

With U.S. shares close to wiping out their losses for the year, investor focus turns to the Federal Reserve’s policy meeting this week, with officials likely to re-commit to using their full range of tools to support the U.S. economy during the pandemic. Meanwhile, global governments are gradually easing their coronavirus lockdowns to revive growth while controlling the spread of Covid-19.

Elsewhere, China’s trade surplus surged to a record in May as exports fell less than expected, helped by an increase in medical-related sales. Oil extended gains after rising for six straight weeks, as OPEC agreed to a one-month extension of its record oil-production cuts. Gold dipped.