EUR/USD fell after hitting a six-week peak of 1.1454 on Tuesday (03/06) amid growing market concerns about a trade war triggered by the United States (US). The appreciation of the greenback weighed on the currency pair, which was trading at 1.1379, down 0.52%.

Wall Street remained in the green zone on news that US President Donald Trump will reportedly speak with Chinese President Xi Jinping this week, according to Reuters sources.

Data from the United States lifted the US Dollar (USD), which has been battered and lost almost 2% this week, according to the US Dollar Index (DXY). The US Job Openings and Labor Turnover Survey (JOLTS) came in better than expected for April, suggesting a solid labor market. Meanwhile, Factory Orders fell sharply in April as manufacturing activity was hit by US President Donald Trump's tariffs.

Uncertainty about US trade policy was also behind the decline in the EUR/USD pair. White House Press Secretary Karoline Leavitt said that the trade deal deadline could confirm that the letter is genuine and on track to a good deal. She added that President Trump will sign an executive order doubling tariffs on steel and aluminum on Tuesday, which will go into effect on Wednesday.

Across the pond, the euro zone Harmonized Index of Consumer Prices (HICP) inflation data for May fell below the European Central Bank's (ECB) target. This reaffirmed expectations that the ECB may cut interest rates this week, a path it began in June.

In the euro zone, the agenda will feature the European Central Bank's monetary policy decision and ECB President Christine Lagarde's press conference. In the US, the calendar will be packed with employment data, with the ADP National Employment Change for May awaited on Wednesday, followed by Initial Jobless Claims for the week ended May 31 and May Nonfarm Payrolls figures. (alg)

Source: Fxstreet