EUR: from heaven to earth. Overview for 05.06.2023

The market’s most traded currency pair on Monday has declined and is consolidating. The current EURUSD quote is 1.0700.

The US NFP rose by 339 thousand in May, exceeding expectations almost twice. A month before, the index increased by 294 thousand. The unemployment rate grew from 3.4% to 3.7%, which was totally unexpected. The average hourly wage in the US in May rose by 0.3% m/m as forecast, upon increasing by 0.4% previously.

Strong signals from the employment sector gave the USD a surprising impulse, decreasing the bears’ expectations about the upcoming Fed’s steps.

Bears in the USD expect the Federal Reserve System to stop raising the interest rate soon. The regulator will have a meeting next week – we will see which position the Fed will stick to.