- The EUR/USD is expected to remain steady around 1.1570 as the US dollar experiences pressure following the July NFP data release.
- Concerns regarding the reliability of soft employment figures weigh heavily on the US dollar.
- Inflation in the Eurozone showed steady growth in July.
The EUR/USD pair is projected to hold onto gains close to 1.1570 during Friday’s late Asian trading session. With the US dollar on the back foot, major currency pairs are performing well amid skepticism surrounding the reliability of US data institutions.
The US Dollar Index (DXY), which measures the greenback against six major currencies, is cautiously trading near 98.70.
On Friday, President Donald Trump dismissed Director Erike Mcentarfer, who faced accusations of fabricating job numbers without providing evidence of any data manipulation. This came right after the agency released its July Non-Farm Payroll (NFP) report.
The NFP report indicated that employers added only 73,000 jobs—much lower than expected—in July. Additionally, June’s employment figures were significantly revised down from 147,000 to just 14,000. The unemployment rate has also ticked up to 4.2% from the previous 4.1%.
Doubts about the state of the cooling labor market and the reliability of US data have diminished the appeal of the US dollar.
Looking ahead, investors are bracing for the US ISM Services PMI data for July, set to be released on Tuesday.
In the Eurozone, steady growth highlighted in the preliminary consumer price harmony index (HICP) data for July has momentarily reduced expectations for further interest rate cuts by the European Central Bank (ECB). The data released on Friday indicated that both estimates and core HICP climbed to 2.0% and 2.2% year-on-year, respectively, slightly outpacing projections.
