Euro Stays Strong Near 1.1600 as US Dollar Feels the Pressure
The EUR/USD pair is trading close to 1.1570 and holding its recent gains. The US dollar is weak because the latest jobs report from the US was not good.
In July, the US only added 73,000 jobs, while people expected 110,000. Also, the job numbers for June were made lower. This made traders doubt the strength of the US economy, so they are being careful with the dollar.
The US Dollar Index is now around 98.70, showing low confidence. At the same time, inflation in the Eurozone has gone up. It reached 2.0% overall and 2.2% for core inflation. Because of this, the European Central Bank (ECB) may not cut interest rates soon, which is good for the euro.
Now, traders are waiting for the US ISM Services PMI report this week. It will give more details about how the US economy is doing and could affect the movement of the dollar and the euro.
Impact:
If US economic data stays weak, EUR/USD might go above 1.1600. But if the US report is strong, the dollar could recover and stop the euro from rising more.