09/06/25

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Market sentiment remains stable as traders exhibit a moderate risk appetite ahead of new US-China trade negotiations. On Monday, the Euro began to recover from losses incurred on Friday, while the US Dollar experienced a rally fueled by strong employment data.

The currency pair EUR/USD opened on a positive note at 1.1415, following a dip to 1.1370 during Friday’s trading session. This upward movement can be attributed to better-than-expected figures from the US Nonfarm Payrolls report. The US Bureau of Labor Statistics revealed the addition of 139,000 jobs in May, surpassing market expectations of 130,000. The unemployment rate held steady at 4.2%, while wage inflation remained unchanged at 3.9%, countering earlier market concerns stemming from a lackluster ADP employment report. Despite some indicators suggesting a cooling job market — such as downward revisions to prior months’ gains — investors responded positively to the data, propelling the US Dollar higher across various trading pairs.

Amid a relatively quiet market week, attention is shifting to the US-China meeting scheduled for later on Monday in London. Traders are optimistic about potential advancements towards normalizing the trade relationship between the two economic giants, contributing to a supportive atmosphere for the Euro.

Looking ahead, Wednesday will bring the much-anticipated US Consumer Price Index (CPI) release, which is expected to reflect the initial effects of recent tariff policies on inflation and could influence the Federal Reserve’s strategy on interest rates.

On the Eurozone front, the final growth figures for the first quarter were revised upward, showing a quarterly GDP growth of 0.6% and a yearly performance of 1.5%. While retail sales data met expectations with a 0.1% month-on-month increase and a 2.3% year-on-year improvement, the Euro’s response was minimal as market focus remained on US payrolls.

Currently, the EUR/USD is navigating above the 1.1400 level, showing an upward trend since mid-May. However, resistance is apparent around the 1.1500 level, which may pose challenges for further bullish momentum in the near term. A downturn below 1.1400 could reopen opportunities for bearish sentiment, with targets set at lower levels if the downward trend continues.