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EUR/USD Strengthens, US Dollar Weakens, Trade Talks In Focus
Monday, 9 June 2025 16:54 WIB | EUR/USD |EUR/USD

EUR/USD started the week on a fairly positive note on Monday (09/06), following a significant decline on Friday. The currency pair is currently trading at 1.1415, having bottomed at 1.1370 on Friday, supported by a weaker US dollar (USD) and aggressive comments from European Central Bank member Peter Kazimir.

The Eurozone economy still faces downside risks, Kazimir said, but inflationary pressures are rising, which according to the ECB official, suggests that the bank is done with monetary easing, "if not at the end of the cycle." In the absence of relevant releases, these comments have contributed to the Euro's recovery,

On the other hand, the US dollar (USD) lost most of its strength after an upbeat US Nonfarm Payrolls (NFP) report on Friday. Data from the US Bureau of Labor Statistics showed on Friday that the US economy created more jobs than expected in May. The Unemployment Rate remained unchanged, as did wage inflation.

The figures offset downbeat market expectations, which followed a dismal ADP jobs report and weak manufacturing and services activity data seen earlier in the week. While some of the data in the jobs report continued to highlight that the jobs market is cooling – for example, the previous two months' gains were revised down – investors kept the US Dollar stronger across the board.

The focus has shifted to the US-China meeting, due to be held on Monday in London, where representatives from the two world economies will try to revive the spirit of last month's Geneva talks, which led to significant reductions in reciprocal tariffs and a significant relief rally in financial markets.

The highlight of the week is the release of the US Consumer Price Index (CPI) on Wednesday, which is expected to show the first impact of US President Donald Trump's tariff policies on inflation and could help determine the Federal Reserve's (Fed) interest rate path. (alg)

Source: FXstreet

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