EUR/USD Stabilizes Above 1.1600 as Fed Rate Bets Rise Ahead of ECB Decision

The EUR/USD pair stabilized above 1.1600 after experiencing a brief dip following the release of the US Nonfarm Payrolls (NFP) data on Friday.

According to the figures, the NFP came in at 162K versus a 53K consensus, which led to an increase in September Federal Reserve hike odds to 58% from 49.4%.

The EUR/USD pair dropped about 40 pips on the release and dipped just under 1.1600, but then retraced by the New York afternoon.

Additionally, the Eurozone data revised second-quarter growth to 0.6% against a 0.4% consensus, pushing the Sentix survey to 5.1 from 0.9 and sending EUR/USD briefly to a high just short of 1.1650 before fading within an hour.

The upcoming ECB decision is due on Thursday at 12:15 GMT, with all 65 economists expecting the deposit rate to be raised to 2.5% and the main refinancing rate to 2.65%, up from 83% in August.