U.K. Halifax HPI, France Trade Balance, FOMC members speak

The euro traded between gains and losses and finally posted a moderate decline of 0.20% against the dollar on Monday, in a subdued trading session as investors remain on the side-lines possibly trying to get a more clear view on the status of the U.S. economy.

Solid U.S jobs data and record low unemployment seem to back up expectations that the Fed might ease its monetary policy schedule in the months to come. The European Central Bank on the other hand, is expected to keep interest rates high for longer than the Fed providing some support to the EUR/USD pair.

Gold prices moved slightly on the upside on Monday, ending the session with a mere 0.2% gain following signs of renewed uncertainty in the markets, as traders are focusing on the debt ceiling impasse on Capitol Hill, with the Treasury Secretary warning the government might be unable to pay debts by June 1.

U.S. data remain in the spotlight for investors looking for more clues regarding the health of the economy and the status of global growth. Inflation data, due on Wednesday could attract investors attention.

After reaching as low as $67,28 per barrel, WTI oil started a solid recovery since last Wednesday and marked a third consecutive daily gain on Monday by more than 2%.

The price of the fuel could be supported by easing concerns of a possible recession after the U.S. reported solid jobs data for April, and as analysts expect supply cuts at the next meeting of the Organization of the Petroleum Exporting Countries and allies. Another view from market analysts is that the move is purely a technical recovery from oversold conditions.

The focus now is shifted to U.S. and Chinese economic indicators and specifically price inflation, trade, inflation, lending, and money supply data for April, as market participants try to assess the level of economic recovery.

The main U.S. stock market indices posted some small fluctuations on Monday, with the US 500 and the US tech 100 ending the session slightly into positive territory while the US 30 traded almost unchanged as the impact from strong employment data and new signs of monetary policy easing by the Fed already seem to be fading.

In the spotlight for this week, however, could be the Labor Department's inflation report due on Wednesday, which is expected to show the consumer price index (CPI) likely climbed 0.4% in April after gaining 0.1% in March. Producer prices, weekly jobless claims and consumer sentiment data could also attract some attention.

A busy earnings schedule is due on Monday with companies such as Novavax Inc, Electronic Arts Inc, Virgin Galactic Holdings Inc, Airbnb Inc, Wynn Resorts Ltd and others publishing their quarterly results. In addition, speeches from several FOMC members could also be closely watched.