EUR/USD appreciates within previous ranges with US-China trade in focus.

The Euro regains lost ground with the US Dollar on retreat ahead of the US-China trade talks.
ECB’s Kazimir suggested on Monday that the ECB’s easing cycle might be done
The US Dollar rallied on Friday after strong NFP figures.

EUR/USD has opened the week on a moderately positive note on Monday, following a significant decline on Friday. The pair is currently trading at 1.1415, having bottomed at 1.1370 on Friday, favoured by a softer US Dollar (USD) and hawkish comments by the European Central Bank member, Peter Kazimir.

The Eurozone economy is still facing downside risk, said Kazimir, but inflationary pressures are increasing, which, according to the ECB official, suggests that the bank would already be done with monetary easing, “if not at the end of the cycle.” In the absence of relevant releases, these comments have contributed to the Euro recovery,

The US Dollar (USD), on the other hand, is losing most of the ground taken after Friday’s upbeat US Nonfarm Payrolls (NFP) report. Data from the US Bureau of Labour Statistics showed on Friday that the US economy created more jobs than expected in May. The Unemployment Rate remained unchanged, and so did wage inflation.

These figures offset the gloomy market expectations, which followed a downbeat ADP employment report and soft manufacturing and services activity data seen earlier during the week. While some data in the employment report continued to highlight that the jobs market is cooling – the previous two months’ gains, for example, were downwardly revised – investors sent the US Dollar higher across the board.

The focus has turned to a US-China meeting, due later on Monday in London, where representatives from the worl’s two economies will try to revive the spirit of Geneva’s talks last month, which led to a significant reduction of the recirpcal tariffs and to a significant relief rally in financial markets.

The highlight of the week will be Wednesday’s US Consumer Price Index (CPI) release, which is expected to show the first impact of US President Donald Trump’s tariff policy on inflation and might help to determine the Federal Reserve’s (Fed) interest-rate path.