- The EUR/USD remains steady as the US dollar gains strength due to robust employment data.
- US Treasury Secretary Scott Bescent is set to meet with Chinese officials on Monday.
- ECB policymaker Yannis Stournaras expressed concerns that uncertainty regarding potential US tariffs might hinder growth in the eurozone.
The EUR/USD is expected to hold its ground after seeing some losses in the previous trading session, during Monday’s Asian hours, it’s likely to hover around 1.1400. The pair has faced some struggles as the US dollar received support from employment data showing stronger-than-expected job growth, which increases the chances that the Federal Reserve will maintain interest rates during the upcoming monetary policy meetings.
According to the US Bureau of Labor Statistics, non-farm payrolls rose by 139,000 in May, slightly down from the April figure of 147,000, which itself was revised from 177,000. This was better than the market’s expectation of 130,000. The unemployment rate remained stable at 4.2%, while average hourly earnings held steady at a 3.9% increase—both numbers came out better than what many analysts were predicting.
Traders will likely keep an eye on the US-China trade discussions taking place on Monday in London. Scott Bescent and two other officials from the Trump administration will be engaging in talks on various issues amid rising tensions in the trade situation before meeting with their Chinese counterparts.
Yannis Stournaras, an ECB policymaker, mentioned that the eurozone seems to have achieved a soft landing. He emphasized that the easing of policies is ongoing. However, he cautioned that uncertainties linked to potential tariffs from the US could disrupt growth, as reported by Bloomberg.
Additionally, ECB President Lagarde mentioned that the central bank is approaching the conclusion of its easing cycle. While she indicated that the monetary policy is “well-positioned,” she acknowledged that the current outlook is unusually uncertain.
