- EUR/USD stays muted on Monday in the Asian trading hours.
- US dollar remains subdued after downbeat Job data.
- EURO fails to lock in gains, ECB eyed later in the week.
The EUR/USD pair trades with minute losses on the first day of the fresh trading week. The pair moves in a very narrow range of 15-pips with no meaningful traction.
At the time of writing, EUR/USD trades at 0.01%, down 0.02% for the day.
The US Dollar Index( DXY), which tracks the greenback performance against its rival, trades at 90.12 with 0.41% losses for the day. The greenback came under selling pressure on Friday, after softer than expected US job data reported for the second straight month.
The job data, which showed US Non Farm Payrolls came at 559K in May and missed the market expectations by nearly 90k. Investors digested the data and it seemed inflation worries had cooled down as the market felt that data was not encouraging to cause a shift in the Fed’s current monetary policy stance. This, in turn, weighed on the US dollar demand.
In the meantime, US Treasury Secretary Jenet Yellen said on the weekend that US President Joe Biden should push forward with his $4 trillion spending plans even if it means higher inflation and interest rates. The greenback remained supported near the lower levels following the comments.
On the other hand, the shared currency could not benefit much from the USD weakness. The Eurozone Retail Sales dropped more than expected in April. The European Central Bank (ECB) hinted it might follow the US Federal Reserve’s lead and will reduce its corporate bond purchase.
As for now, investors are keeping their eye on German Factory order in the wake of a light economic calendar.
EUR/USD Additional Levels
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