The EUR/USD currency pair opened the week with modest gains on Monday, rebounding slightly after a sharp drop on Friday. The pair is currently trading at 1.1415, recovering from a Friday low of 1.1370, which followed a stronger-than-expected US jobs report.
US Jobs Data Lifts the Dollar
The US Bureau of Labor Statistics reported on Friday that the US economy added more jobs than expected in May. The unemployment rate and wage inflation both remained unchanged.
This data boosted the US dollar and reversed market pessimism caused by weaker figures earlier in the week. Earlier reports, including a disappointing ADP employment release and soft manufacturing and services data, had signaled a slowing job market. However, the solid non-farm payrolls (NFP) number helped restore confidence in the US economy.
Even though the jobs report revised down gains from the prior two months, investors reacted positively, driving the dollar higher across the board.
Market Focus Shifts to Geopolitical Events
With no major economic releases scheduled early this week, attention has turned to the US-China summit taking place in London on Monday. Markets have welcomed recent global efforts to ease trade tensions, helping to support mild risk appetite and offering a slight lift to the euro.
All Eyes on US Inflation Data
Looking ahead, the key focus will be Wednesday’s release of the US Consumer Price Index (CPI). This report will offer insight into how tariffs and trade policies under President Donald Trump are impacting inflation. It could also play a crucial role in shaping the Federal Reserve’s interest rate decisions in the coming months.
EUR/USD Faces Key Technical Levels
Since mid-May, EUR/USD has been showing a generally positive trend. However, the pair is still struggling to break above resistance near 1.1500. Technical indicators, including a bearish divergence on the 4-hour chart, suggest that bullish momentum may be weakening.
If the price continues to rise, the bulls will face initial resistance at 1.1455 (June 3 high), followed by a stronger barrier at the 1.1500 level.
On the downside, a move below 1.1400 and the June 6 low of 1.1371 could open the door for a deeper correction. Further support lies at 1.1315 (May 30 low) and the 1.1215–1.1220 zone (lows from May 20 and 28).
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