Euro Holds at 1.1500 as Markets Await US Labor Data
The euro posted slight gains against the US dollar during Tuesday's trading (August 4). The EUR/USD pair held steady around the 1.1500 level, following a pullback from the three-week high of 1.1560 reached on Monday.
Sentiment toward the euro received a modest boost from improving market risk appetite. Hopes regarding negotiations over the Iran conflict helped ease pressure, although investors remained cautious ahead of the release of key US labor market data this week.
The situation regarding the Middle East conflict remains uncertain. While both the United States and Iran have exercised restraint so far, they continue to send conflicting signals. US President Donald Trump has urged Tehran to sign a peace deal and reopen the Strait of Hormuz, whereas Iran has denied any direct contact with the US.
Market focus has now shifted to US JOLTS Job Openings and Factory Orders data. These figures will serve as early indicators ahead of the major Nonfarm Payrolls (NFP) report due on Friday. The NFP report is expected to be a crucial benchmark for markets in gauging the future direction of Federal Reserve monetary policy.
In terms of market impact, EUR/USD is likely to remain range-bound as investors stay cautious about increasing long positions on the euro. Rabobank anticipates that the pair will continue to trade choppily within the **1.1400–1.1500** range over the coming months, particularly as markets monitor the impact of high energy prices on Eurozone growth and inflation. (asd)
Source: Newsmaker.id
