Euro Stalls Near Three-Week Highs Ahead of Crucial Nonfarm Payrolls Report

The Euro held steady near its three-week highs against the US Dollar on Friday, as investors awaited the release of July's Nonfarm Payrolls report. The market consensus predicts an 80K increase in net employment for July, but some experts are more cautious, anticipating a modest improvement to 65K forecast versus June's 57K.

Economists at Deutsche Bank argue that July's figures would put the latest readings below the 3- and 6-month moving averages, consistent with the recent slowing in the weekly ADP reports. This underscores a gradual loss of momentum in hiring even as the labor market remains resilient.

The Eurozone data released on Friday showed Industrial Production rose 0.2% in June, down from May's 0.7% increase, but above the 0.1% market consensus. German Trade Balance data revealed that June's surplus narrowed to EUR 15.4 billion from an upwardly revised EUR 19.4 billion surplus in May.

The US Dollar drew support from growing doubts about a peace deal in Iran and the reopening of the Strait of Hormuz, as well as reports that Chairman Kevin Warsh is ready to hike interest rates as soon as September if inflation remains persistently high.