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EUR/USD eases near 1.1550 as Fed-hike bets cool after NFP

US nonfarm payrolls data showed weaker employment, with a -23,000 jobs print and a 37,000 downward revision to June.

Reported · Written up by our desk · Major Pairs

The euro edged lower against the US dollar in European trading, with EUR/USD around 1.1550, as the US dollar’s early recovery faced doubts, according to FXStreet.

FXStreet cited Rabobank’s view that the case for additional Fed tightening has weakened after the latest US Nonfarm Payrolls report. The employment release included a -23,000 jobs print and a 37,000 downward revision to the June estimate, reinforcing a softer labor-market tone, even as Rabobank said the door is not fully closed on further Fed hikes.

Rabobank also pointed to evidence that employment growth has been slowing for several months and said the risks to the labor market have not disappeared since the three so-called insurance cuts made last year. In FXStreet’s write-up, this backdrop could strengthen arguments for a more dovish Fed stance, even though the policy debate remains unresolved.

Looking ahead, FXStreet said the key catalyst for the dollar this week is the US Consumer Price Index data for July, due on Wednesday. It also noted that on the euro’s price chart, EUR/USD is holding above the 20-day exponential moving average near 1.1484 and slightly above a downward-sloping trend line around 1.1520, keeping a near-term bullish bias while support is seen around 1.1520.

Latest closeEUR/USD 1.152 ▼0.3%

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