- EUR/USD pulled back from a two-month high of 1.1495, reached on Thursday.
- US Weekly Initial Jobless Claims climbed to 247,000, above the expected 235,000.
- The European Central Bank delivered a widely expected 25 basis point rate cut on Thursday.
EUR/USD continues to lose ground after pulling back from a two-month high of 1.1495, marked on June 5, currently trading around 1.1440 during the Asian hours on Friday. Traders adopt caution ahead of the upcoming US Nonfarm Payrolls, which is expected to have added 130,000 jobs in May, below the 177,000 increase in April. The Unemployment Rate is also expected to hold steady at 4.2%.
On Thursday, the US Department of Labor released Weekly Initial Jobless Claims, which rose to 247,000, above the expected 235,000. On Wednesday, US ADP private sector employment rose 37,000 in May, against a 60,000 increase (revised from 62,000) recorded in April, far below the market expectation of 115,000.
US President Donald Trump has a phone call with Chinese President Xi Jinping. Trump said that the call was productive and prepared to continue tariff negotiations. However, Trump and his team struggled to stay composed with Chinese trade officials. Last week, Trump accused China of breaching a truce on tariffs after a Washington-Beijing agreement to temporarily lower reciprocal tariffs in a meeting in Geneva.
On Thursday, the European Central Bank (ECB) delivered a 25 basis points rate cut, as widely expected, and reduced interest rates to 2.0% from 2.25%. The ECB outlined, in its accompanying statement, its meeting-by-meeting approach moving forward and updated its projections for growth and inflation. Moreover, ECB President Christine Lagarde said in a post-meeting press conference that monetary policy is “well-positioned,” while the current uncertain outlook is more than usual. Lagarde also added that the central bank is close to ending the easing cycle.
