EUR/USD remains steady around 1.1620 during the early hours of the Asian session on Friday. Market participants will pay keen attention to the forthcoming release of the US employment figures for May on Friday. The ECB is anticipated to increase its deposit rate to 2.25% during its June meeting. The EUR/USD pair remains stable at approximately 1.1620 in the early hours of the Asian session on Friday. Traders are inclined to remain on the sidelines in anticipation of crucial US economic data. The US jobs data for May will be the focal point later in the day.
Stronger-than-anticipated US May ADP private payrolls and JOLTS job openings data released earlier this week indicated a robust US labour market. Traders will derive additional insights from the US Nonfarm Payroll figure for renewed momentum. The US economy is anticipated to witness an addition of 85,000 jobs in May, with the Unemployment Rate expected to hold steady at 4.3% throughout this timeframe. Any signs of improvement in the US labour market may lead traders to elevate their expectations regarding the Federal Reserve’s stance on maintaining higher interest rates for an extended period, thereby bolstering the US Dollar against the Euro.
Markets are currently assessing a nearly 42% probability of a Federal Reserve rate increase in December, as indicated by the CME FedWatch Tool. On the Euro front, the hawkish stance of the European Central Bank may serve to mitigate the EUR’s losses. The ECB is expected to elevate its deposit rate to 2.25% during the forthcoming June policy meeting, with an additional hike anticipated in September, according to a survey of economists.