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XAUUSD (1317.41): Gold prices were seen consolidating around the 1311 - 1307 level of support with price action closing on Friday above this level. In the near term, gold prices could potentially push higher with the resistance level at 1325 to be the likely target. A breakout above this level could signal a further continuation to the correction. For the moment, the downside looks limited with any dips likely to be supported near the current price levels.

GBPUSD (1.3552): The British pound was seen trading subdued with price action seen testing the support level at 1.3530 on Friday. In the near term, we expect the GBPUSD to continue to consolidate around this level heading into Thursday's Bank of England meeting. There is scope for the GBPUSD to correct to the upside as the 4-hour Stochastics oscillator points to a bullish divergence. The initial target is likely to be the resistance level which could act as dynamic resistance to the upside. To the downside, a break down below 1.3530 could signal a decline to 1.3500 round number support.

EURUSD (1.198657): The EURUSD remained at the monthly lows, albeit with price action testing a fresh 5-month low on an intraday basis. The euro managed to pull back from the lows briefly to settle above the support level of 1.1934. This potentially indicates a rebound in price action in the near term. The lows formed on Friday also coincided with the Stochastics posting a higher low. The bullish divergence could be validated on a close above 1.1988 where minor resistance is seen. A breakout above this level could signal a move toward 1.2090 - 1.2070 level of resistance initially.

The monthly payrolls report for April showed that the U.S. unemployment rate fell to a seventeen and a half year low to 3.9%. This was stronger than the estimates which forecasted a decline in the unemployment rate to 4.0% from 4.1% in March.

The U.S. economy was seen adding 164k jobs during the month which was below estimates of 190k. However, the payrolls report for March was seen to be revised higher to 135k. Wage growth remained muted, rising at a sluggish pace of 0.1%. The U.S. dollar was seen rising on the back of the broadly mixed but robust jobs report.

Looking ahead, the economic calendar for the day is relatively quiet. The day starts off with the German factory orders report. Economists' polled expect factory orders to rise 0.5% on the month. This marks a modest increase from 0.3% seen in the month before. A rebound in the factory orders could potentially ease concerns of a possible slowdown in the economic momentum in the Eurozone.

Later in the day, the Swiss monthly inflation report is due. Estimates point to a 0.3% increase in consumer prices following an increase of 0.4% the month before. Other economic indicators for the day include the retail PMI from the Eurozone and the Sentix investor confidence report.

The U.S. trading session will see the FOMC members Bostic and Barkin speaking later in the day.

The U.S dollar remains under pressure against the Japanese yen currency in early Monday trading, after showing only a muted reaction to Friday’s disappointing U.S Nonfarm Payrolls job report. The USDJPY currently trades around the 109.00 level, with downside pressures building after the pair found technical resistance from the 108.65 level. Traders are likely to remain focused on the 109.00 level, which is currently a key marker for the pairs sentiment.

The USDJPY pair is likely to correct lower while trading below the 109.50 level, intraday support is located at the 108.65 and 108.30 levels.

If the USDJPY pair starts to trade back above the key 109.50 level, intraday buyers will be encouraged to test towards the 110.03 and 110.45 levels.

The British pound is trying to recover upside momentum against the U.S dollar, after hitting 1.3485, following the U.S Nonfarm Payrolls job report on Friday. The GBPUSD pair currently trades around the 1.3540 level, after price bounced sharply once the key 1.3500 handle was recovered. Trading ranges on sterling may be subdued today, as the United Kingdom observes a National Bank Holiday.

The GBPUSD pair is intraday bearish while trading below the 1.3589 level, further losses towards 1.3500 and 1.3485 levels seems possible.

If the GBPUSD pair moves back above the 1.3589 level, we may buyers moving price towards the 1.3610 and 1.3655 resistance levels.

A series of economic data and monetary policy events will headline the financial markets on Monday. Chief among them are a series of Federal Reserve speakers, who could shed light on the future of U.S monetary policy.

The economic calendar begins in Europe with a report on German factory orders scheduled for 06:00 GMT. Orders for manufactured goods are forecast to rise 0.7% in March, following a 0.3% gain the month before.

At 07:15 GMT, the Swiss government will report on consumer inflation for the month of April. The consumer price index (CPI) is projected to rise 0.2% from the previous month and 0.8% annually.

Later in the morning, Sentix will report on euro-wide investor confidence. The monthly report is expected to show a solid increase in the investor confidence index for the month of May.

Shifting gears to North America, Federal Open Market Committee (FOMC) members Thomas Barkin and Robert Kaplan will deliver speeches at 18:00 GMT and 19:30 GMT, respectively. Both officials were part of last week's FOMC meeting, which resulted in the Fed leaving interest rates on hold.

Federal Reserve Bank of Chicago President, Charles Evans, is also scheduled to deliver a speech at 19:30 GMT.

The Fed is widely expected to raise its benchmark interest rate when it meets in June. The June policy decision will be accompanied by quarterly projections covering GDP, unemployment and inflation, as well as officials' forecast for interest rates over the next three years.

North of the border, Bank of Canada Deputy Governor, Timothy Lane, is also scheduled to deliver a speech at 19:00 GMT.

In terms of economic data, the Federal Reserve will report on consumer credit change at 19:00 GMT. Consumer credit is forecast to rise $16.5 billion in March, compared with a $10.6 billion gain the month before.

EUR/USD

Europe's common currency traded slightly higher on Monday but remained well below the psychological 1.2000 barrier. At the time of writing, EUR/USD was trading at 1.1971 for a gain of 0.1%. Above the intermediate resistance, the bulls are likely to run into challenges around 1.2030.

USD/CHF

The Swiss franc continues to trade near parity against the dollar, with prices hovering just below 1.000. At the time of writing, USD/CHF was trading at 0.9995. The pair has gained 400 pips over the last month as momentum returned to the greenback. Swiss CPI data and US Fed speeches on Monday could impact the direction of this pair.

USD/JPY

After challenging the 110.00 level last week, USD/JPY has succumbed to bearish pressure, with prices falling back below 109.00. At present, USD/JPY is trading at 108.77, having declined 0.3%. The pair is holding on to a critical support near 108.73, which corresponds with the 100-day SMA.

Swiss CPI rose 0.2% mom, 0.8% yoy in April, below expectation of 0.3% mom, 0.9% yoy.

Core CPI rose 0.3% mom, 0.5% yoy. Domestic products CPI rose 0.0% mom, 0.4% yoy. Imported products CPI rose 0.9% mom, 2.1% yoy.

Also from Swiss, foreign currency reserves rose to CHF 757B in April, up from CHF 738B.

Daily Pivots: (S1) 146.94; (P) 147.60; (R1) 148.15; More...

Intraday bias in GBP/JPY remains on the downside for 144.97 low. Break there will resume the fall from 156.59 and target 100% projection of 156.59 to 144.97 from 153.84 at 142.22 next. On the upside, above 148.38 minor resistance will turn intraday bias neutral and bring recovery. But upside should be limited well below 150.60 support turned resistance to bring another decline.

In the bigger picture, for now, we're treating price actions from 156.59 as a corrective move. Therefore, while deeper fall is expected, strong support should be seen above 139.29 cluster support (50% retracement of 122.36 to 156.59 at 139.47) to contain downside and bring rebound. There is still prospect of extending the rise from 122.36. However, considering that GBP/JPY failed to sustain above 55 month EMA (now at 153.94), firm break of 139.29 will confirm trend reversal and turn outlook bearish.

Daily Pivots: (S1) 129.89; (P) 130.42; (R1) 130.94; More....

Intraday bias in EUR/JPY remain son the downside for 128.94 support. Break will resume whole decline from 137.49 and target 61.8% projection of 137.49 to 128.94 from 133.47 at 128.18 next. On the upside, above 131.13 minor resistance will turn bias neutral and bring recovery. But upside should be limited well below 133.47 resistance to bring another decline.

In the bigger picture, for now, price actions from 137.49 are viewed as a corrective pattern only. Hence, while, deeper decline would be seen, strong support is expected at 38.2% retracement of 109.03 to 137.49 at 126.61 to contain downside and bring rebound. Up trend from 109.03 (2016 low) is expected to resume afterwards. Though, sustained break of 126.61 will be an important sign of trend reversal and will turn focus to 124.08 resistance turned support.