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Euro holds near 3-week highs before US nonfarm payrolls
The euro was just below 1.1530 per US dollar, with analysts split on whether July hiring will meet expectations of 80K net jobs gains.
The euro was trading flat on Friday, a few pips below 1.1530 against the US dollar after a mild pullback from three week highs near 1.1560 earlier in the week, as the US dollar stayed supported but traders refrained from large directional bets ahead of the next US jobs release. FXStreet said investors were waiting for July's Nonfarm Payrolls report, where the consensus calls for an 80K increase in net employment, though some economists warned the figure could come in disappointing. Deutsche Bank economists expected a more modest 65K increase versus June's 57K, arguing the outlook remains consistent with a gradual loss of hiring momentum suggested by recent ADP data. In the eurozone, Germany's industrial production rose 0.2% in June versus May's 0.7%, and though it was below the market consensus of 0.1%, the print still pointed to activity growth. German trade balance also showed a narrower surplus of EUR 15.4 billion in June compared with an upwardly revised EUR 19.4 billion in May, against an expectation of EUR 17.4 billion. The report noted that the US dollar also drew some safe haven support amid renewed concerns related to Iran, including coverage that Tehran was considering a plan to ban Israeli and US vessels from the Strait of Hormuz, adding to earlier session worries and expectations of reopening. The Nonfarm Payrolls report is released by the US Bureau of Labor Statistics and can move FX markets because monthly payroll changes are volatile.