Euro steadies above 1.1600 as traders await US NFP data
The EUR/USD pair trades on a flat note around 1.1625 during the early Asian session on Friday. Traders prefer to wait on the sidelines ahead of the US key employment report for August, which will be published later on Friday.
The EUR/USD pair held steady around 1.1625 during the early Asian session on Friday, as traders wait for the US Non-Farm Payrolls (NFP) data later in the day. Fed Governor Christopher Waller hinted at a possible pause in rate hikes at the September meeting, depending on inflation data, which has led to a decrease in the probability of a rate hike from 63.2% to 50.2%.
Meanwhile, the European Central Bank (ECB) is expected to raise interest rates at its September meeting, potentially marking the shortest hiking campaign in 15 years. Eurozone rate expectations have shifted, with markets pricing in a further 25 basis point hike by year-end. Despite some hawkish statements from Fed officials, the market-implied chance for a rate hike at the September meeting has fallen, with traders now pricing in a 50.2% probability, down from 63.2% the previous day.
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