US Labor Market Takes Center Stage as Hawkish Bias Lingers

The upcoming week will bring crucial economic data for the US economy, including July's Nonfarm Payrolls (NFP) report. Investors expect the economy to add 91K jobs, following June's 57K, while the Unemployment Rate is forecast to edge up to 4.3%. The spotlight will also be on ISM surveys, ADP Employment figures, and JOLTS Job Openings, which could provide important signals on labor market momentum and economic activity.

The release of these data will test whether the US Dollar can recover from its sell-off during the last week of July. Stronger-than-expected figures could reinforce the Fed's hawkish bias, while softer data may revive expectations of policy easing. The EUR/USD pair is holding onto gains near the 1.1530 price region and will be driven by a busy economic calendar.

The UK has a relatively quiet calendar, leaving GBP/USD primarily driven by US economic releases. The AUD/USD pair will face an important week as China publishes Caixin Services PMI and July trade data, both closely watched given Australia's strong trade relationship with China.