Euro advances as US labor data disappoints

The Euro (EUR) edged higher on Wednesday, climbing near 1.1560 amid disappointing US labor market data that weighed on the US Dollar (USD). The US Dollar Index (DXY) slipped 0.22% to 99.70, staying below the 100.00 level, while the EUR/USD pair moved closer to the upper range it has been within since late July. The ADP Employment Change for July fell short of expectations at 44K, down from 70K in June.

This follows weak JOLTS Job Openings data on Tuesday, which indicated a faltering labor market. The ISM Services Purchasing Managers Index (PMI) also increased to 54.1 in July from 54 in June but fell short of the 54.5 forecast. While the internals showed a contraction in the Employment Index and a rise in New Orders, the Prices Paid component rose to 70.3, which could impact the Federal Reserve's monetary policy.

Geopolitics also plays a role in the global risk sentiment, with Iran and Oman reportedly nearing an agreement on shipping through the Strait of Hormuz. The technical analysis indicates that EUR/USD is bullish, testing a pivot at 1.1558 and supported by multiple levels. The RSI suggests firm but mature bullish momentum, while the downside support is at 1.1543.