Euro Steadies Above $1.1600 as Traders Await US NFP Data

The Euro has steadied above $1.1600 as traders await US NFP data for August, which is expected to show an addition of 56,000 jobs with an unemployment rate holding steady at 4.1%. The Federal Reserve Governor Christopher Waller stated that he leans towards keeping interest rates steady in September if there are no surprises from upcoming inflation data. This comment contrasts with the hawkish statements made by Chairman Kevin Warsh last week.

Market-implied chances for a rate hike at the September policy meeting have fallen to 50.2% according to the CME FedWatch tool, down from 63.2% on Wednesday. The European Central Bank is expected to raise interest rates at its September policy meeting for the second and final time in what would be its shortest hiking campaign in 15 years.

The ECB's Governing Council makes monetary policy decisions at meetings held eight times a year, with their primary mandate being to maintain price stability. The Harmonized Index of Consumer Prices (HICP) is an important econometric for the Euro, and if inflation rises more than expected, it obliges the ECB to raise interest rates to bring it back under control.