EUR/USD Cautious Ahead of US Jobs Data and ECB Rate Hike Speculation

The US Dollar Index (DXY) has held onto its gains from Monday, currently trading around 100.00. The upcoming release of the July US Nonfarm Payrolls (NFP) data on Friday will be closely watched by investors as it can significantly impact the Federal Reserve's monetary policy outlook.

Additionally, the JOLTS Job Openings data for June is scheduled to be published later in the day, with analysts expecting 7.45 million fresh job postings, slightly lower than the May figure of 7.594 million.

The Eurozone has seen increasing confidence that the European Central Bank (ECB) will hike interest rates in the September policy meeting, with ECB September hike pricing at around 90% according to analysts at Deutsche Bank.