Soft US Nonfarm Payrolls figures reduce expectations for further Federal Reserve tightening, weighing on the USD.
The EUR/USD pair trades marginally lower at 1.1550 in early European trading, pressured by a modest USD recovery that analysts describe as lacking conviction. The dollar’s rebound follows a pullback in hawkish Federal Reserve expectations after Friday’s weaker-than-expected US jobs report.
US Nonfarm Payrolls disappointed with a 23,000-job miss and a 37,000 downward revision to June’s estimate. Analysts note employment growth has slowed for months, reinforcing concerns about labor market softness. While the case for another Fed hike has weakened, the debate remains unresolved ahead of Wednesday’s US CPI data.
Investor focus shifts to July’s inflation print, which could sway Fed policy expectations. In the Eurozone, Sentix Investor Confidence data will provide insight into economic sentiment, though its immediate market impact may be limited.