EUR/USD Steadies Above 1.1600 as Fed Rate Hike Odds Rise

The EUR/USD currency pair has stabilized above 1.1600 after a tumultuous few days, following Friday's US Nonfarm Payrolls data which saw a surprisingly strong reading of 162K versus an expected 53K.

This lifted the odds of a September Federal Reserve rate hike to 58%, up from 49.4% previously, causing the pair to drop by around 40 pips when the numbers were released at 12:30 GMT on Friday.

However, the pair quickly rebounded and held steady above 1.1600, with some analysts expecting a third rate hike in the coming months as markets price in a main refinancing rate of 2.65% and deposit rate of 2.5% after the ECB decision on Thursday.

The Eurozone also saw some significant economic developments, including revised second-quarter growth at 0.6%, beating expectations of 0.4%, and a Sentix survey that rose to 5.1 from 0.9, sending EUR/USD briefly to a high just short of 1.1650 before fading within an hour.