News: FOREX-Dollar drifts toward monthly loss as Fed bets ease

The dollar nursed last week's losses on Monday and was headed for its first monthly drop in five months as investors have scaled back bets that rising U.S. rates will spur further gains and as fears of a global recession have receded a little.
The week ahead is full of data that could provide clues on the outlook for global growth, U.S. interest rates and the dollar with Chinese Purchasing Managers' Index figures, U.S. jobs numbers and growth data in resource bellwether Australia.
Trade was likely to be lightened through Monday as U.S. stock and bond markets close for the Memorial Day public holiday.
Early in the Asia session the dollar was a fraction weaker on the euro EUR=EBS at $1.0728, just above a five-week low, having dropped about 1.5% on the common currency last week.
The risk-sensitive Australian and New Zealand dollars were firm after a Friday rally, while the yen JPY=EBS was a fraction weaker at 127.28 per dollar.
The Aussie AUD=D3 hovered near a three-week high at $0.7161, as did the kiwi NZD=D3 at $0.6536.
"The dollar can fall further this week. Were it not for China's lockdown, the global outlook would be brighter, and the dollar lower," said Joe Capurso, head of international economics at the Commonwealth Bank of Australia in Sydney.
The dollar index =USD , which hit a two-decade high of 105.010 earlier in May was steady at 101.660 on Monday. Sterling GBP=D3 held last week's gains at $1.2628.
China's yuan CNH=D3 held steady at 6.7210 per dollar in offshore trade, buoyed by progress out of virus lockdowns.
Shanghai said on Sunday "unreasonable" curbs on businesses will be removed from June 1, while Beijing reopened parts of its public transport as well as some malls.
Most analysts are wary of calling an outright end to the recent dollar strength.
But positive U.S. consumer data and the easing lockdowns in China is helping kindle hopes about global growth, which tends to support exporters' currencies at the dollar's expense.
Investors have also seized on hints the Federal Reserve, once it has hiked aggressively over the next two months, might then take a breather.
"The Fed has stopped short of validating calls for even more tightening, leading to a plateau in forward expectations," said NatWest Markets' global head of desk strategy, John Briggs.
Cryptocurrencies remain on the back foot and bitcoin BTC=BTSP has struggled to recoup losses made during a broad sell-off of risk assets at the start of the month. It last bought $29,333.
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	Currency bid prices at 0036 GMT 
 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS	$1.0732		$1.0736	 -0.03%		 -5.59%	  +1.0740	 +1.0727 
 Dollar/Yen		JPY=EBS	127.2100	   127.1000	+0.20%		 +10.72%	 +127.3300   +127.3500 
 Euro/Yen		 																			 
 Dollar/Swiss	  CHF=EBS	0.9578		 0.9574	  +0.04%		 +5.00%	  +0.9583	 +0.9571 
 Sterling/Dollar   GBP=D3	 1.2624		 1.2628	  +0.00%		 -6.62%	  +1.2634	 +1.2625 
 Dollar/Canadian   CAD=D3	 1.2720		 1.2722	  -0.03%		 +0.59%	  +1.2728	 +1.2715 
 Aussie/Dollar	 AUD=D3	 0.7162		 0.7160	  +0.07%		 -1.43%	  +0.7166	 +0.7149 
 NZ				NZD=D3	 0.6534		 0.6539	  -0.07%		 -4.54%	  +0.6540	 +0.6524 
 Dollar/Dollar																				   
All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX
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World FX rates	https://tmsnrt.rs/2RBWI5E 
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