Fundamental Market Analysis for June 2, 2026 EURUSDEuro/US DollarSAXO:EURUSDFresh-Forexcast2004EUR/USD is trading near 1.16350 after a cautious euro recovery amid expectations of news on the US-Iran negotiations. The dollar remains stable, as geopolitical uncertainty is still high and the market is not rushing to fully price in a decline in tensions. The US currency is also supported by strong US industrial data: the business activity index rose in May to its highest level in four years. For the euro, the situation remains mixed. Inflation in the eurozone accelerated to 3.0% in April, while rising energy and raw material costs are complicating the position of the industrial sector. This limits the room for softer ECB decisions, but at the same time increases risks for the region’s economy. Therefore, even with a local improvement in sentiment, market participants remain cautious about buying the single currency. In the coming hours, EUR/USD will depend on the market’s assessment of US inflation, labor market data, and Middle East news. If the Federal Reserve keeps signaling a long period of high rates, the dollar may regain the initiative. Given strong US statistics and the euro’s weak stability, selling the pair looks preferable. Trading recommendation: SELL 1.16400, SL 1.16700, TP 1.15500