The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index (CPI) inflation report.
The Greenback strengthens against the Euro (EUR) as traders trim bets for a March Federal Reserve (Fed) rate cut after the upbeat US jobs data. The Bureau of Labor Statistics revealed on Wednesday that the US Nonfarm Payrolls (NFP) climbed by 130,000 in January, stronger than the expectation of 70,000. The Unemployment Rate fell to 4.3% in January from 4.4% in December, better than the projection of 4.4%.
According to the CME Fed Watch tool, financial markets are now pricing in nearly a 94% probability that the Fed will leave rates unchanged at its next meeting, up from 80% from the previous day.
Across the pond, the growing acceptance that the European Central Bank (ECB) would likely hold interest rates steady for the rest of the year could support the shared currency. ECB President Christine Lagarde said during the press conference that the central bank would maintain its data-dependent and “meeting-by-meeting approach” and would not be “recommitting to a particular rate path.”
Around 85% of economists surveyed by Reuters in their January poll showed the ECB would leave the interest rates unchanged over the rest of 2026.
