USD review

Western Union notes:

The dollar saw some of its session gains evaporate after subdued news on inflation and consumer spending suggested an even lower risk of an imminent Fed rate hike. Core inflation slowed to an increase of 1.2 percent annually in April which was down from 1.3 percent in March and further below the Fed's 2 percent bullseye. 

Consumer spending was unchanged with a zero reading in April compared to forecasts of a 0.2 percent increase. Personal spending though got upgraded to a 0.5 percent gain last time. And in a good sign for future consumer spending, personal income jumped 0.4 percent which was a tick better than forecast. 

The big driver for the dollar this week should be Friday's U.S. nonfarm payrolls report for May with hiring seen up 225,000 and unemployment holding at a seven-year best of 5.4 percent.