The euro extends gains against the dollar as traders await the US nonfarm payrolls report later this week.
The EUR/USD pair climbed above 1.1400 in early European trading Thursday, recovering most of its overnight losses. The move follows broad-based dollar weakness as markets position for the upcoming US nonfarm payrolls report.
The pair had slipped below 1.1350 during Wednesday’s session but rebounded sharply ahead of key labor market data. Analysts expect the report to influence Federal Reserve rate cut expectations, with recent soft economic indicators fueling speculation of a September easing.
Trading volumes remain elevated as investors assess the potential impact of weaker-than-expected payrolls on the dollar’s trajectory.