US private payrolls surged by 42,250 in early May, bolstering Fed rate-cut caution and lifting the USD against the EUR.
The EUR/USD pair dropped toward 1.1600 on Tuesday as the USD strengthened following robust US labor-market data. Private employers added 42,250 jobs in the first week of May, the highest reading since the series began in October 2025, reinforcing expectations that the Federal Reserve may delay interest rate cuts.
Rising Treasury yields and heightened geopolitical risks further supported the USD. US President Donald Trump’s hawkish remarks on Iran, suggesting potential escalation, spurred safe-haven demand. Meanwhile, Eurozone sentiment remained subdued as ECB officials warned of long-term growth challenges, citing demographic pressures.
Technical analysis shows EUR/USD trading at 1.1599, below key moving averages, signaling a bearish near-term outlook.