Forex
Home›Forex›Major Pairs›Euro stays near 1.1550 as USD firms on weak US jobs da…
Euro stays near 1.1550 as USD firms on weak US jobs data
EUR/USD is trading just above 1.1550 after US July nonfarm payrolls fell 23K, while a potential Strait of Hormuz shipping deal keeps geopolitical risk supporting the dollar.
EUR/USD began the week holding just above 1.1550 in Asian trade, remaining close to a fresh high last seen since June 17, according to FXStreet.
The euro’s position reflects a mixed driver set. US Nonfarm Payrolls showed the economy lost 23K jobs in July, far below consensus estimates of 80K, and the prior month was revised to a 20K gain from 57K originally. Wage growth slowed as Average Hourly Earnings eased to 3.2% from 3.4%, while the unemployment rate dipped to 4.1% from 4.2%, which the outlet says undermines the case for Fed rate hikes.
Despite the softer jobs and wage backdrop, FXStreet notes the immediate USD reaction has been supported by ongoing uncertainty tied to efforts to reopen the Strait of Hormuz. The outlet cites Iran saying talks with Oman to establish a safe shipping route are nearing agreement, while adding Iran cautioned any deal would not reopen the waterway immediately, alongside claims of attacks affecting shipping and regional infrastructure.
FXStreet also points to the USD Index as a headwind for EUR/USD and says traders have been reluctant to take directional bets, waiting for more signals. Attention is set on US consumer inflation data due Wednesday for additional cues on the Fed’s policy path, while further geopolitical developments are expected to influence USD price dynamics.
Latest closeEUR/USD 1.152 ▼0.3%