Euro rose in European trade against dollar for the fifth straight session, marking three-month highs on improving risk appetite while concerns about US-China escalation take a back seat. 

EUR/USD rose 0.3% to 1.1151, the highest since March 17 higher after closing up 0.25% on Friday. 

Across May, euro rose 1.4%, marking the first monthly profit since December 2019.

The monthly gains came as European countries eased restrictions for Covid 19 and gradually reopened their economies.

The European Commission announced a plan of 750 billion euros to deal with the Covid 19 crisis, the worst since the thirties. 

According to plans, Italy and Spain are the two most affected countries, and thus will take the long's share of the fund, with Rome getting 173 billion euros, while Madrid will take 140 billion euros, some are grants and some are loans. 

Upbeat data for many major sectors in the European economy in May also bolstered the euro as economies relax strict quarantine measures. 

US President Donald Trump didn't take severe steps against the Chinese government in response to Hong Kong measures, instead sanctioning some officials and withdrawing the special status given to Hong Kong. 

It's clear then the US doesn't want roll back the progress made on trade with China, while aiming to extend talks to the second stage. 

Gold futures tilted higher in Asian trade to May 18 highs as the dollar index gave up ground, following earlier industrial and services data from China and ahead of similar US data. 

As of 03:52 GMT, gold futures due in August rose 0.13% to $1,752 an ounce, while the dollar index shed 0.21% to 98.02. 

Earlier Chinese data showed the manufacturing PMI at 50.6 in May, while the services PMI rose to 53.6. 

From the US, the manufacturing PMI is expected at 39.8 in May, up slightly from 36.1 in April, while construction spending is expected down 6.5% in April. 

The US services PMI is expected at 43.5 in May, up from 41.5 in April. 

The US experienced mass protests this weekend after the death of an unarmed black man by white police officers in Minnesota, with analysts fearing further spread of Covid 19 because of the protests, in turn pushing back hopes for a quick recovery. 

US President Donald Trump has also escalated tensions with China on its treatment of Hong Kong protests, with Trump sanctioning Chinese officials in response. 

USDJPY tilted lower in Asian trade following earlier spending data from Japan and ahead of US data, while markets price in mass protests in the US and mounting US-China tensions. 

As of 05:55 GMT, USD/JPY shed 0.14% to 107.56, with an intraday low at 107.52. 

Earlier Japanese data showed capital spending rose 4.3% in the first quarter of the year, while the manufacturing PMI steadied at 47.8. 

From the US, the manufacturing PMI is expected at 39.8 in May, up slightly from 36.1 in April, while construction spending is expected down 6.5% in April. 

The US services PMI is expected at 43.5 in May, up from 41.5 in April. 

The US experienced mass protests this weekend after the death of a black man by white police officers in Minnesota, with analysts fearing more spread of Covid 19 because of the protests, while pushing back hopes for a quick recovery. 

US President Donald Trump has also escalated tensions with China on its treatment of Hong Kong protests, with Trump sanctioning Chinese officials in response. 

Most US stock indices rose on Friday, as President Donald Trump didn't  impose tariffs against China despite imposing sanctions against some Chinese officials.

Trump blamed China for the spread of the coronavirus, adding that many countries around the world, including the US, are still waiting for answers.

Trump also imposed sanctions on officials from Hong Kong and Beijing due to China's decision to  to curb Hong Kong’s autonomy, and ordered US financial regulators to track all Chinese firms listed on U.S. stock markets.

The US consumer confidence index rose to 72.3 points in May vs. 71.8 in April, to beat forecasts of 73.7 points, while the personal spending fell 13.6% in April.

Federal Reserve Chairman Jerome Powell warned of a second wave of the coronavirus in the US after reopening the economy.

To the oil market, West Texas Intermediate crude rose 5.3% to close at $35.49 a barrel, and posted weekly gains of 6.7% and its largest ever monthly gains of 88.4%, after it hit an intraday high of $33.8 and a low of $32.3.

Brent rose 0.1% to $35.33 a barrel, and posted weekly gains of 0.6% and the monthly gain the largest since 1999 of 39.8%, with a high of $35.1 and a low of $34.06.

As for stocks, Dow Jones slipped less than 0.1% or 17 points to close at 25,383, and posted a weekly gains of 3.8% and monthly gains of 4.3%, after it hit a day high 25,482 and a low 25,031.

Nasdaq rose 01.3% or 121 points to 9,490 points, and registered weekly gains of 1.8% and monthly gains of 6.8%, with a high of 9,505 and a low of 9,324.

S&P 500 rose 0.5% or 14 points to 3,044, and posted 3% gain this week and 4.5% during May, with a high of 3,049 and a low of 2,998.