The EUR/USD pair is holding steady near 1.1570 in Monday’s late Asian session, extending Friday’s gains as the US Dollar remains under pressure amid doubts over the reliability of official economic data.
The US Dollar Index (DXY), which measures the Greenback against six major currencies, is trading cautiously around 98.70.
Market sentiment toward the dollar soured after US President Donald Trump dismissed Bureau of Labor Statistics (BLS) Commissioner Erike McEntarfer, accusing her of falsifying job figures—without presenting evidence. The move followed the release of July’s Nonfarm Payrolls (NFP) report, which revealed a sharp slowdown in hiring.
The NFP data showed only 73,000 new jobs added in July, well below expectations of 110,000. June’s figures were also revised sharply lower to just 14,000 from the initial 147,000. The unemployment rate edged up to 4.2%, in line with forecasts, from 4.1% in the prior month.
The weaker labor market and growing skepticism over US data have reduced the appeal of the dollar. Traders now turn their attention to the US ISM Services PMI for July, due Tuesday, for further direction.
In the Eurozone, inflation figures have strengthened the euro’s position. Preliminary data for July’s Harmonized Index of Consumer Prices (HICP) showed headline inflation at 2.0% and core inflation at 2.2% year-on-year—both slightly above estimates. This reduces the likelihood of additional interest rate cuts from the European Central Bank (ECB) in the near term.
