Euro Flatlines as Markets Eye Key US Jobs Data

Financial markets are bracing for the US employment data release on Friday, which may provide clues about the health of the labor market and the path of US interest rates.

Economists predict that Nonfarm Payrolls (NFP) will increase by 83,000 in July, while the Unemployment Rate is expected to rise to 4.3% during the same period.

Markets have already priced in a nearly 64.7% chance of a US rate hike in September, down from about 77% before the July Fed meeting, according to the CME FedWatch tool.

Strategists at ING emphasize that the EUR/USD trend will be largely driven by the Federal Reserve's decision in September, which remains unresolved.