Forex Today: Dollar continues to shed ground

What you need to take care of on Tuesday, May 24:

The greenback weakened on the first trading day of the week, amid a better market mood. US President Joe Biden said to be studying cutting tariffs on Chinese imports, which could save up to $80 billion in taxes for the country. Biden also called on OPEC to raise oil production,  in the hopes it would help to cool down inflationary pressures.  His comments helped to keep stocks afloat throughout the day, despite persistent inflation and growth-related concerns.

The EUR/USD pair flirts with 1.0700, helped by European Central Bank President Christine Lagarde.  She said she expects the facilities program to end “very early” in the third quarter of the year, leaving policymakers in a position to exit negative interest rates by the end of the quarter. Also, this would allow a rate hike to take place in July, in line with forward guidance, according to Lagarde.  

GBP/USD trades around 1.2580, also holding on to intraday gains, despite worrisome Brexit news. The UK has been long supporting the case to modify the Northern Ireland Protocol amid the barriers it creates in Northern Ireland and aims to legislate against it within the upcoming weeks.

Commodity-linked currencies benefited from the better tone of equities. AUD/USD trades around 0.7100, while USD/CAD is in the 1.2780 region.

The Swiss Franc appreciated against the greenback, with the pair now at around 0.9660, while USD/JPY is pretty much unchanged on a daily basis, trading at around 127.80.

Gold posted a modest advance and finished the day at $1,854 a troy ounce. Crude oil prices edged marginally lower, with WTI changing hands at $110.30 a barrel.

May preliminary S&P Global PMIs for major economies are due on Tuesday.

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