EUR/USD hovers near 1.1215 ahead of US jobs data, balancing hawkish ECB rhetoric against a cooling US Treasury yield environment and uncertain Fed rate hike prospects.
EUR/USD trades near 1.1215 early Friday, but two opposing forces offset each other: hawkish ECB signals (Nagel flagging a probable rate hike next month, Lagarde scoring 6.2/10 on the hawkish side) support the Euro, while a 10bps fall in the US 2-year yield to 4.47% and reduced December Fed hike odds (~70%) weigh on the Dollar. Friday's US September jobs data (NFP seen at +65,000, unemployment 4.2%) is the decisive catalyst.
Friday's US September jobs data: economists expect 65,000 new jobs and an unchanged 4.2% unemployment rate, which traders will use to gauge the Fed's rate path.
The EUR/USD pair trades near 1.1215 as investors await critical US nonfarm payrolls data. While hawkish signals from ECB officials Nagel and Knot provide a floor for the Euro, a decline in US Treasury yields and shifting Fed rate expectations keep the pair under pressure. Analysts expect the NFP report to show 65,000 new jobs, a figure that will be pivotal in determining the Federal Reserve's next policy move.
Friday's US September jobs data: economists expect 65,000 new jobs and an unchanged 4.2% unemployment rate, which traders will use to gauge the Fed's rate path.