EUR/USD Strengthens As US Nonfarm Payrolls Impact Eases
EUR/USD started the week on a fairly positive note on Monday (09/06), after experiencing a significant decline on Friday. The currency pair is currently trading at 1.1415, having bottomed at 1.1370 on Friday, as the US Dollar (USD) strengthened following a better-than-expected US Nonfarm Payrolls (NFP) report.
Data from the US Bureau of Labor Statistics showed on Friday that the US economy created more jobs than expected in May. The Unemployment Rate remained unchanged, as did wage inflation.
These figures offset downbeat market expectations, which followed a dismal ADP jobs report and weak manufacturing and services activity data seen earlier in the week. While some of the data in the jobs report continued to highlight that the jobs market is cooling – the previous two months’ gains, for example, were revised down – investors gave the US Dollar a boost overall.
With no major macroeconomic data releases to start the week, focus has shifted to the US-China meeting, which will be held on Monday in London. Markets have cheered efforts by the world’s major economies to find a way to normalize their trade relations, and mild risk appetite has supported the euro.
The highlight of the week is the release of the US Consumer Price Index (CPI) on Wednesday, which is expected to show the first impact of US President Donald Trump’s tariff policies on inflation and could help determine the Federal Reserve’s (Fed) interest rate path.
Source: FXStreet
