EUR/USD hovers around 1.1400, eyes on US-China trade talks
EUR/USD holds steady after registering losses in the previous session, trading around 1.1400 during the Asian hours on Monday. The pair faced challenges as the US Dollar (USD) received support from Friday’s stronger-than-expected United States (US) jobs data for May, which raised the odds of the Federal Reserve (Fed) keeping its benchmark interest rate steady at its next two monetary policy meetings.
The US Bureau of Labor Statistics (BLS) revealed that US Nonfarm Payrolls (NFP) rose by 139,000 in May, compared to the 147,000 increase (revised from 177,000) in April. This reading came in above the market consensus of 130,000. Moreover, the Unemployment Rate held steady at 4.2%, and the Average Hourly Earnings remained unchanged at 3.9%, both readings came in stronger than the market expectation.
Traders will likely monitor US-China trade talks scheduled in London on Monday. US Treasury Secretary Scott Bessent and two other Trump administration officials are set to discuss with Chinese counterparts after both countries have argued over numerous issues amid an escalating trade war.
European Central Bank (ECB) policymaker Yannis Stournaras stated that the eurozone has achieved a soft landing and emphasized that the policy easing is nearly done. However, Stournaras cautioned that uncertainty related to potential US tariffs could disrupt growth, per Bloomberg.
ECB President Lagarde also noted that the central bank is close to ending the easing cycle. Monetary policy is “well-positioned,” while the current uncertain outlook is more than usual, Lagarde added.
Source : Fxstreet
