Dollar Strength Weighs on Euro and Sterling Ahead of Key US Jobs Data

The US dollar maintained its strength against major counterparts, supported by robust macroeconomic data that underscores the resilience of the US economy. Markets are currently awaiting the release of US labor market indicators to gain clearer signals regarding the future direction of monetary policy. Consequently, EUR/USD and GBP/USD face persistent downward pressure amid ongoing inflation risks and the Federal Reserve's cautious stance on policy easing.

This price action follows data showing US GDP growth at 1.6% for the recent quarter, per market data, which remained below the 2% forecast but still indicated stable expansion. In comparison, Eurozone economic sentiment reached 93.5, showing slight improvement but failing to offset the yield differentials favoring the greenback. Analysts note that the 7.9% surge in US Durable Goods orders has further reinforced the dollar's appeal as both a safe-haven and a high-yielding asset.

Traders should watch EUR/USD support levels closely as the market prepares for the upcoming US non-farm payrolls data. According to the economic calendar, upcoming speeches from Fed officials will be critical in determining if the dollar's momentum persists. With the PCE Price Index at 3.8% as of May 28, 2026, the divergence between the Fed and European central banks remains a primary driver for currency volatility.