The euro is trading flat as Friday’s session gets underway, holding just above the $1.14 level. The single currency is on track for its worst weekly performance against the dollar since 2022, with losses nearing 3%. The decline follows the fallout from the US-EU trade deal, which many traders have viewed as suboptimal from a European perspective, creating fresh headwinds for the economies of the eurozone. Meanwhile, the US dollar remains on the front foot, supported by strong economic data and a hawkish stance from the Federal Reserve. Against this backdrop, currency markets will be closely watching the release of US Non-Farm Payrolls data for July, due later today. Should the figures confirm that the US labour market continues to create jobs at a healthy pace, investors may further strengthen their dollar positions, reducing expectations of a Fed rate cut in September — a scenario likely to drive the greenback even higher against the euro.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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