Soft US jobs data cut Fed rate hike bets to 46% for September, lifting the euro before Wednesday’s CPI print.
The EUR/USD pair dipped to 1.1550 in early European trade Monday as the US Dollar recovered from Friday’s sharp sell-off. The Dollar Index rose 0.12% to 99.72 after July’s Nonfarm Payrolls showed a loss of 23K jobs, missing forecasts of 80K new positions.
Traders slashed Federal Reserve rate hike odds for September to 46%, down from 67% a week earlier. The euro remains above its 20-day EMA at 1.1484, with the RSI stabilizing above 60, signaling persistent bullish momentum.
Markets now await Wednesday’s US Consumer Price Index data, which could further shift Fed policy expectations.