- The EUR/USD is likely to remain under bearish pressure, trading below 1.1400 on Friday.
- US non-farm payrolls saw an increase of 139,000 in May.
- The market seems to be leaning towards a hold on Fed policy in July after reviewing employment data.
After a calm start to the European trading session, the EUR/USD took a downturn, dropping below 1.1400. At the time of this report, the currency pair was down 0.55% for the day, sitting at 1.1382.
The US Dollar gained from the labor market data, which further pressured EUR/USD during the US trading hours on Friday.
The U.S. Bureau of Labor Statistics (BLS) disclosed an increase of 139,000 in non-farm payrolls for May, surpassing the market expectation of 130,000. The unemployment rate remained steady at 4.2%, which was anticipated.
In terms of the CME Group FedWatch tool, the likelihood of a 25 basis points rate cut in July dropped from about 30% to less than 20% right before the employment report was released. As the USD strengthened, the USD index was noted at 99.25, reflecting a 0.55% gain that day.
The US Economic Calendar doesn’t show any notable data releases for the remainder of the day. Meanwhile, key Wall Street indicators were rising at the opening, creating a more optimistic sentiment around the US economic outlook.
Earlier in the week, the European Central Bank (ECB) announced a decision to lower its key rate by 25 basis points after a policy meeting in June. ECB President Christine Lagarde discussed the policy landscape, suggesting that it might be nearing the conclusion of its mitigation phase.
