Risk appetite picked up in the long weekend for US and UK markets with equities rebounding and aiding a recovery in commodities and forex. The big news came with UK's PM announcing her resignation due to take place on 7th June and then act as caretaker PM until a new leader is elected.

USD/JPY is reporting modest gains this Monday morning, having registered losses in the previous three trading days.

EUR/USD seems unable to gather traction above 1.1200, as the far right’s gains in the EU elections suggest the bloc will likely continue to struggle with the populist insurgency for years to come.

GBP/USD was slightly higher at 1.2727, having regained some ground after Prime Minister Theresa May announced a date for her departure, rebounding from the four-and-a-half month low of 1.2605 reached on Thursday.

The US and UK market is observing a trading holiday today, thus, liquidity in the FX markets will be thin. The broad-based risk-appetite trends and USD-dynamics should dictate the sentiment surrounding the market today, all in combination with the now stalled US-China negotiations and potential US tariffs on EU products.

Oil prices were mixed on Monday, with U.S. crude under pressure from Sino-American trade tensions, while Brent prices were supported by OPEC's supply cuts.

Gold lacked any firm directional bias and seesawed between tepid gains and minor losses through the early European session on Monday. The precious metal struggled to capitalize on last week's goodish recovery move from multi-week lows and remained capped below the $1,287-88 supply zone. US-China trade tensions and a subdued USD demand lend some support, however a slight improvement in risk sentiment kept a lid on any strong gains.