FX.co ★ Euro Slips as Strong US Jobs Data Lifts Dollar

On Friday, the euro fell further below the $1.14 threshold, retreating from Thursday's six-week peak of $1.149. This decline was driven by a stronger-than-anticipated U.S. jobs report, which boosted the dollar's value. In May, the United States added 137,000 jobs, slightly exceeding the forecast of 130,000. The unemployment rate remained steady at 4.2%, while wage growth increased to 0.4%, surpassing predictions of 0.3%. Meanwhile, in Europe, investors continued to evaluate the European Central Bank's (ECB) anticipated 25-basis-point rate cut and President Christine Lagarde's indication that the easing cycle might be close to concluding. The ECB also revised its inflation forecasts for 2025 and 2026 downward, citing lower energy prices and a stronger euro as influencing factors. Additionally, ECB policymaker Yannis Stournaras informed Bloomberg that the eurozone has managed a soft landing and most rate cuts are likely behind us, although uncertainty remains—particularly concerning the potential impact of new tariffs.