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EUR/USD rises toward 1.1560 as US labor data disappoints

EUR/USD gained about 0.2% after ADP showed July hiring slowed, while the US Dollar Index fell toward 99.7.

Reported · Written up by our desk · Major Pairs

EUR/USD edged higher near 1.1560 on Wednesday, up about 0.2%, as a weaker US labor market report reduced support for the US dollar, FXStreet said.

The ADP Employment Change rose to 44K in July, below expectations of 70K and down from 98K in June. The report followed Tuesday's JOLTS Job Openings data, which showed vacancies falling to 7.359 million, and came alongside an ISM Services PMI reading of 54.1 in July versus 54 in June, though below the 54.5 forecast.

Within ISM's details, the Employment Index dropped to 47.4 from 51.2, while New Orders rose to 57.2 from 55.1. Prices Paid climbed to 70.3 from 67.7, a mix that left the Federal Reserve balancing cooling employment against firmer services costs, according to FXStreet.

Attention now shifts to Friday's Nonfarm Payrolls report, with FXStreet noting that a softer official print could further weigh on the dollar and potentially push EUR/USD to test recent highs. The outlet also cited Reuters reporting that Iran and Oman are near drafting an agreement on commercial shipping through the Strait of Hormuz, a development that has continued to influence the broader risk backdrop.

Latest closeEUR/USD 1.153 ▼0.1%

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