EUR/USD Trades Near 1.1400 as Markets Watch US-China Trade Talks

EUR/USD Holds Near 1.1400 Ahead of Key US-China Trade Talks

The EUR/USD currency pair trades cautiously near 1.1400 on Monday, recovering slightly from prior session losses as the market digests a stronger US Dollar and shifts attention to the upcoming US-China trade discussions in London.

Strong US NFP Boosts the Greenback

The US Dollar (USD) continues to find support from Friday’s Nonfarm Payrolls (NFP) report, which showed a May job gain of 139,000, outperforming market expectations of 130,000. Although lower than April's revised 147,000, the print solidified the view that the Federal Reserve may keep rates unchanged for the next two meetings.

• Unemployment Rate: Steady at 4.2%
• Average Hourly Earnings: Flat at 3.9% YoY, exceeding forecasts

These data points fuel demand for the USD, keeping EUR/USD pressured, even as traders await further developments on the geopolitical front.

US-China Trade Negotiations in Focus

Traders now turn their focus to US-China trade talks taking place in London on Monday, where US Treasury Secretary Scott Bessent, along with two Trump administration officials, will meet Chinese counterparts to address growing trade tensions.

The talks come at a critical time, with economic risks elevated by the potential for new US tariffs, which European Central Bank (ECB) policymaker Yannis Stournaras warned could derail Eurozone growth.

ECB Growth Concerns Add Pressure on Euro

Stournaras’ comments underscore ongoing worries in the Eurozone, where external shocks like trade tariffs could weaken exports and investment, adding pressure on the Euro amid tightening global financial conditions.

The EUR/USD pair, therefore, remains sensitive to geopolitical outcomes, with any breakthrough or breakdown in trade discussions likely to trigger volatility.

Related Content on Tredu.com:

• What the Latest NFP Means for Fed Rate Policy
• How US-China Trade Talks Could Reshape Currency Markets
• ECB Warnings and Eurozone Risks: What You Need to Know

Key Takeaways:

• EUR/USD trades near 1.1400, slightly firmer after recent decline.
• US NFP data lifts the US Dollar, limiting Euro’s upside.
• US-China trade talks in London are a key market catalyst.
• ECB’s Stournaras warns tariffs could hurt Eurozone growth.
• Traders remain cautious as geopolitical risks drive sentiment.