Geopolitical tensions and safe-haven demand lift the USD, pressuring the EUR/USD pair despite better-than-expected US jobs data.
EUR/USD trades near 1.1750 in early Asian trading, extending losses as the USD strengthens amid rising risk aversion. Escalating Middle East tensions, including Iran’s response to US pressure, have bolstered demand for the Greenback as a safe haven.
US Nonfarm Payrolls rose by 115K in April, down from March’s 185K but above the forecast of 62K. The Unemployment Rate held steady at 4.3%, matching expectations. Despite the mixed jobs report, geopolitical risks overshadowed the data.
President Trump’s upcoming meeting with China’s Xi Jinping may further influence market sentiment, with Iran and regional stability expected to dominate discussions. The fragile ceasefire and shipping route concerns add to uncertainty, keeping pressure on the EUR.