• A moderate risk appetite ahead of a fresh round of US-China trade talks keeps market sentiment buoyed. 
• The Euro is trimming Friday’s losses on a calm trading session on Monday. 
• The US Dollar rallied on Friday after strong NFP figures.

EUR/USD has opened the week on a moderately positive note on Monday, following a significant decline on Friday. The pair is currently trading at 1.1415, having bottomed at 1.1370 on Friday, as the US Dollar (USD) rallied on the back of a better-than-expected US Nonfarm Payrolls (NFP) report.

Data from the US Bureau of Labour Statistics showed on Friday that the US economy created more jobs than expected in May. The Unemployment Rate remained unchanged, and so did wage inflation.

These figures offset the gloomy market expectations, which followed a downbeat ADP employment report and soft manufacturing and services activity data seen earlier during the week. While some data in the employment report continued to highlight that the jobs market is cooling – the previous two months’ gains, for example, were downwardly revised – investors sent the US Dollar higher across the board.

In the absence of first-tier macroeconomic releases at the beginning of the week, the focus has turned to a US-China meeting, due later on Monday in London. The market is welcoming the efforts from the world’s major economies to find a way to normalize their trade relationship, and a mild risk appetite is buoying the Euro.

The highlight of the week will be Wednesday’s US Consumer Price Index (CPI) release, which is expected to show the first impact of US President Donald Trump’s tariff policy on inflation and might help to determine the Federal Reserve’s (Fed) interest-rate path. 
 

Euro PRICE Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
 

Daily digest market movers: The US Dollar jumped on strong US employment data

• US Nonfarm Payrolls increased by 139,000 in May, slightly beating market expectations of a 130,000 reading. Unemployment remained steady, at 4.2%, tackling fears of an increase to 4.3%, and wage inflation was unchanged at 3.9% against expectations of a decline to 3.7%.
• The overall picture shows a tight labor market with sticky wage inflation, which endorses the Federal Reserve’s most hawkish sector and dampens expectations of a rate cut in the coming months. This view is likely to limit the US Dollar’s weakness.
• The Federal Reserve is on its blackout period ahead of next week’s monetary policy meeting. Futures markets are not foreseeing significant chances of a rate cut: the next one isn’t seen at least until September, and markets expect between one and two cuts in the rest of the year, according to data from the CME Group’s Fed Watch Tool.
• In the Eurozone, also on Friday, the final reading of the first quarter’s Gross Domestic Product was revised higher to a 0.6% quarterly growth and a 1.5% yearly performance from previous estimations of 0.3% and 1.2%, respectively.
• Beyond that, Retail Sales figures showed that consumption grew by 0.1%, in line with expectations, and by 2.3% year-on-year, beating the market consensus of a 1.4% increase. The impact on the Euro, however, was marginal, as all eyes were on the US payrolls report.
• The calendar today is light with only the Eurozone Sentix Investors’ Confidence Index and some ECB policymakers providing some guidance for the Euro.
   

Technical analysis: EUR/USD looks for direction above 1.1400

(Click on image to enlarge)

EUR/USD is trading on a positive trend, printing higher highs and higher lows since mid-May, but the rejection at around 1.1500 seen last week and a bearish divergence on the 4-hour chart suggest that bulls might be losing steam.

Price action is heading higher on Monday, with bulls likely to be challenged at the June 3 high at 1.1455 ahead of the 1.1500 level.

On the downside, a bearish move below 1.1400 and the June 6 low at 1.1371 would give bears hopes of a deeper correction with potential targets at 1.1315 (May 30 low)  and the 1.1215-1.1220 (May 20 and 28 lows).

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