The Euro traded flat around 1.1520 against the US dollar on Friday after briefly touching the 1.1560 level. German data offered mixed signals: industrial production rose 0.2% in June—slightly above the 0.1% forecast while the trade surplus narrowed to €15.4 billion from the previous €19.4 billion.
The US dollar continues to find support from growing uncertainty regarding the Iran deal and the reopening of the Strait of Hormuz. Additionally, the market is reassessing the likelihood of a Federal Reserve rate hike in September should inflation remain high, making it difficult for the EUR/USD pair to extend its gains.
Market attention is now focused on the US Nonfarm Payrolls (NFP) report. A stronger-than-expected NFP figure could boost the dollar and push the EUR/USD pair lower. Conversely, weak labor data could dampen expectations for a Fed rate hike, potentially allowing the Euro to retest the 1.1560 level.
Source: Newsmaker.id