Key Points 

• US debt limit agreement reached, pending approval from Congress
• Euro weakened against USD; AUD/USD increased, NZD/USD under pressure
• USD/CAD fell, favoring the Canadian dollar
• Turkish lira hits record low after Erdogan's election win

What you need know about Tuesday, May 30 is as follows:

Following an agreement in principle between US President Biden and Speaker Kevin McCarthy to raise the debt limit for two years, there was more activity over the weekend than on Monday. The agreement must be approved by both the House and the Senate by the June 5 deadline. Janet Yellen, the Treasury Secretary, warned that the US might run out of money on that day. On Wednesday, the Congress is anticipated to vote.

Despite the fact that many European markets and Wall Street were closed on Monday, the US accord improved market mood. Because of the decrease in the EUR/USD, the US dollar somewhat weakened, and the DXY ended the day slightly higher.

On Monday, the euro trailed behind; EUR/USD reversed course from 1.0740 to 1.0700, and EUR/GBP had its lowest daily finish since November below 0.8670. GBP/USD finished level, circling 1.2350. The Consumer Price Index (CPI) for April will have a preliminary reading released by Spain on Tuesday.

USD/CHF fell to around 0.9030 before reversing course near 0.9050. The weakest closing price for EUR/CHF since October 2022 was 0.9685. On Tuesday, Switzerland will announce its Q1 GDP figures.

At 140.90, the USD/JPY reached new monthly highs before losing steam and declining to 140.00. Tuesday marks the release of the April unemployment rate in Japan.

Due to the uptick in market optimism, AUD/USD increased for the second straight day. At 0.6550, there was resistance to the rebound. Building Permits for April will be made available on Tuesday.

The NZD/USD exchange rate continued under pressure and was observed circling 0.6050. The pair is trading 225 pip below where it was a week ago and is consolidating recent losses. In New Zealand, data on building permits is also required.

The stronger market sentiment and higher crude oil prices caused the USD/CAD to fall below 1.3600, favoring the Loonie.

Gold fluctuated in price around $1,940, while Silver lost a small amount of Friday's gains and dropped to $23.15. BTC/USD increased to $27,650 while Ethereum increased by 2.10% to $1,893.

A record-low close was achieved by the Turkish currency. After Recep Tayyip Erdogan won the Turkish presidential runoff election on Sunday, the USD/TRY exchange rate surpassed 20.00 for the first time.