EUR/USD is trading at 1.0853, 0.10% down since previous day close. EUR/USD is trading back and forth near 1.0850 in the European morning on Monday. Softer US monthly Core PCE inflation data and hotter-than-expected Eurozone HICP inflation data help the pair to stay afloat amid a better market mood. US ISM PMI holds the key. The US economic docket will feature the ISM Manufacturing PMI data for May later in the day. Investors expect the reading to improve to 49.8 from 49.2 in April. A reading above 50, which would show the business activity moving back into the expansion territory, could support the USD in the second half of the day.

GER30 is trading at 18460, 0.55% up since previous day close. The DAX was up 0.6% to the 18610 level on Monday, tracking a general positive mood in Europe, as traders welcomed a bigger-than-expected manufacturing PMI for China while bracing for the first ECB rate cut since 2016 this week. Meanwhile, the manufacturing PMI for Germany was confirmed at 4-month high, in a sign business conditions are stabilizing. On the corporate front, SAP (1.4%), Siemens (0.7%), Airbus (0.4%) and Deutsche Telekom (0.7%) were all higher.

XAU/USD is trading at 2319, 0.68%, down since previous day close. Gold price struggles to gain any meaningful traction in the European session on Monday amid a combination of diverging forces and languishes near a three-week low touched at $2,315. Gold traders look forward to the US ISM Manufacturing PMI data for fresh trading impetus From a technical perspective, some follow-through selling below the $2,320 level will confirm a breakdown through the 50-day Simple Moving Average (SMA) and pave the way for deeper losses. Given that oscillators on the daily chart have just started gaining negative traction, the Gold price might then weaken further below 2300.