Investors await July US Nonfarm Payrolls as the Euro stabilizes following weaker-than-expected German trade and industrial data.
The Euro traded flat at 1.1520 USD on Friday, retreating slightly from three-week highs as markets awaited the US Nonfarm Payrolls report. The US Dollar showed modest strength, though caution prevailed ahead of the key jobs data release later in the day.
German Industrial Production rose 0.2% in June, missing May’s 0.7% gain but beating the 0.1% consensus. Meanwhile, the German Trade Balance surplus narrowed to EUR 15.4 billion from an upwardly revised EUR 19.4 billion in May, falling short of the EUR 17.4 billion forecast.
Safe-haven demand for the USD gained traction amid rising geopolitical tensions, including reports of potential Iranian restrictions on US and Israeli vessels in the Strait of Hormuz. Fed commentary suggesting a possible September rate hike also supported the Greenback.