Euro defends the 1.1500 level ahead of a string of US labour data

The Euro (EUR) maintains a slight gain against the US Dollar (USD) on Tuesday, as Monday's retreat from a three-week peak at 1.1560 has been halted at 1.1500. Factors contributing to this stability include a cautious market awaiting key US labour data releases and hopes for a potential Iran-US negotiation process. The conflict in the Middle East remains dormant, with both the US and Iran refraining from escalating the situation, though their communications remain contradictory.

US President Donald Trump has called on Tehran to sign a peace deal with the US and reopen the Strait of Hormuz, while Iranian authorities have denied any contact with the US and threatened to retaliate if the blockade of Iranian ports continues. Investors will focus on the US JOLTS Job Openings and Factory Orders figures later in the week, with the main event being the Nonfarm Payrolls report on Friday, which could provide insights into the Federal Reserve's monetary policy decisions.

TD Securities anticipates a decline in June JOLTS job openings to 7,000k from May's 7,594k, suggesting that recent employment surges may not be sustainable. Analysts at Rabobank warn that the market remains hesitant to rebuild EUR positions near last year's highs due to uncertainty surrounding higher energy prices and their impact on the Eurozone's growth and inflation outlook.

The pair's near-term outlook is expected to see choppy ranges within the EUR/USD 1.14/1.15 level, as investors remain cautious about committing to new Euro exposure.