EURUSD: BUY 1.1370, SL 1.1350, TP 1.1470 | 05 Junio 2025

Events to pay attention today:

11:00 EET. EUR - Business Activity Index in the Services Sector

17:00 EET. USD - ISM Business Activity Index in the Services Sector

15:15 EET. USD - Change in Employment from ADP

EURUSD:

The EUR/USD exchange rate remained virtually unchanged after falling in the previous session, trading at around 1.1380 during Asian trading hours on Wednesday. The pair may strengthen as the US dollar (USD) struggles due to caution among traders amid growing uncertainty over tariffs and their potential negative impact on US economic growth.

According to the JOLTS (Job Openings and Labor Turnover Survey), 7.39 million new jobs were created in April, exceeding March's figure of 7.2 million. This figure unexpectedly exceeded market expectations of 7.1 million.

Traders are awaiting the US non-farm payrolls (NFP) report for May, which is expected to show an increase of 130,000 jobs. If the report shows stronger-than-expected results, it could lift the dollar and put downward pressure on the EUR/USD pair.

US Treasury Secretary Scott Bessent said on Sunday that Trump and Xi Jinping are expected to meet soon to resolve trade disputes. China's Ministry of Commerce said on Monday that China had fulfilled the agreement by cancelling or suspending relevant tariff and non-tariff measures against US ‘reciprocal tariffs’. Last week, US President Donald Trump accused China of violating the tariff truce reached earlier this month.

The eurozone's harmonised index of consumer prices (HICP) fell 1.9% year-on-year in May, falling below the ECB's 2% target for the first time in eight months. The core HICP, which excludes volatile items, fell by 2.3% year-on-year, compared with 2.7% in the previous month.

Trading recommendation: BUY 1.1370, SL 1.1350, TP 1.1470

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