The post EUR/USD stabilizes above 1.0800 as US labor market loses steam appeared on BitcoinEthereumNews.com.

EUR/USD exhibits strength as growing speculation for Fed rate cuts in September weighs on the US Dollar. US labor market conditions appear to have lost momentum. Unexpected progress by the left-wing in French elections has increased uncertainty over the economy’s fiscal outlook. EUR/USD stabilizes above the round-level support of 1.0800 in Monday’s American session. The major currency pair remains firm as the US Dollar (USD) is under pressure due to growing speculation that the Federal Reserve (Fed) will start lowering interest rates at the September meeting.  The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, hovers near a three-week low around 104.85.  Market expectations for Fed interest rate cut bets in September have increased further amid evidence that the United States (US) labor market is losing momentum. The US Nonfarm Payrolls (NFP) report for June pointed to a slowdown in labor demand as revised estimates showed that the number of individuals hired in April and May was lower by 110K than previously estimated. Also, the Unemployment Rate surprisingly rose to 4.1% from the consensus and the former release of 4.0%. Also, upside risks to inflation ease as wage growth momentum appears to have slowed in June. The US NFP report showed that Average Hourly Earnings, a measure of wage growth, declined expectedly on a monthly and annual basis. Cooling labor market strength favors early Fed rate cut bets. According to the CME FedWatch tool, 30-day Federal Funds futures pricing data shows that the probability of rate cuts in September has increased to 75.8% from 64% a week ago. Going forward, investors will keenly focus on the US Consumer Price Index (CPI) report for June, which will be published on Thursday. Investors will pay close attention to inflation to know whether the disinflation process, which paused in…

---

Filed under: News - @ July 8, 2024 4:24 pm