Euro Holds Gains as Strong US Jobs Data Fuels Rate Hike Bets

The EUR/USD pair continues to hold gains above 1.1600 despite stronger-than-expected US jobs data, released on Friday by the US Bureau of Labor Statistics. The Nonfarm Payrolls (NFP) figure increased by 162,000 in August, exceeding expectations of 56,000.

This robust data has boosted rate hike bets at the US Federal Reserve's September meeting, with nearly 58.3% odds now priced in for a 25 basis points rate increase. This is up from about 50.2% before the data, according to the CME FedWatch tool.

Chief economist Joe Brusuelas commented that 'the American labor market is in good condition heading into the end of the year.' The data also lends support to hawkish Federal Reserve policymakers who are growing impatient with inflation.