Euro: Weak US jobs lift EUR against US Dollar on Fed repricing – Danske Bank

EUR/USD rose after a weak US July jobs report triggered renewed repricing of Federal Reserve expectations and broad US dollar weakness. Nonfarm payrolls came in at -23k versus +80k expected, with May-June revisions of -103k, while unemployment edged down to 4.1% and participation fell to 61.4%, the weakest since February 2021. The pair briefly climbed to 1.1581, its highest level in nearly two months, as markets pared September Fed tightening bets to 11bp. Looking ahead, EUR/USD traders will focus on US inflation data and the euro area’s Sentix investor confidence and Q2 GDP releases for confirmation of the euro’s momentum.