- EUR/USD holds steady as the US dollar weakens amid economic uncertainties in the US.
- Job openings reported by Jolts reached 7.39 million in April, notably higher than the anticipated 7.1 million.
- The eurozone’s harmonized consumer price index decreased year-on-year by 1.9% in May, falling short of the ECB’s target of 2%.
EUR/USD has seen minimal movement after experiencing losses previously. It seems to be hovering around 1.1380 during the Asian trading hours on Wednesday. This may be, at least in part, a result of the ongoing struggles of the US dollar (USD), as traders are becoming increasingly focused on economic uncertainties related to tariffs, which could potentially impact US economic growth.
According to the latest Jolts report, there were 7.39 million job openings in April, a significant increase from the 7.2 million reported in March. The numbers turned out better than the market’s expectations of around 7.1 million, which is, I think, quite encouraging.
Traders are now eagerly awaiting the upcoming US Non-Agricultural Payroll (NFP) report for May. If the results are stronger than predicted, it could bolster the dollar and put some pressure on the EUR/USD pair.
On Sunday, US Treasury Secretary Scott Bescent mentioned that a meeting between Trump and Xi Jinping is anticipated soon to discuss trade disputes. The Chinese Commerce Department announced on Monday that they have adhered to the contract, which includes cancelling or postponing tariffs and measures aimed at US “mutual tariffs.” However, just last week, President Trump accused China of breaking a ceasefire agreement regarding tariffs made earlier in the month.
Meanwhile, the eurozone’s harmonized consumer price index (HICP) showed a decline of 1.9% year-on-year in May. This dip marks the first time it has fallen below the ECB’s 2% target in eight months. Core HICP, which excludes more volatile items, also decreased to 2.3% from 2.7% the previous month.
This decline in HICP has heightened expectations that if inflation remains under control in May, the European Central Bank (ECB) may consider a rate cut during its upcoming meeting. Financial markets are already anticipating a possible reduction of 25 basis points (BPS) to 2% at the next Monetary Policy Conference.
