The EURUSD pair continues to rise and extends buying pressure above 1.0900. The milder Greenback supports the major pair's upswing following the release of dismal US jobs statistics.
The Weaker NFP Boosted USD Bears
Fears of a wider economic downturn were stoked by the United States' slower-than-expected employment growth and growing unemployment rate, which also hurt the US dollar (USD). According to Labour Department data released on Friday, nonfarm payrolls (NFP) rose by 114,000 in July, less than the estimated 185,000 and a decrease from the downwardly amended 179,000 in June.
Furthermore, the unemployment rate increased marginally to 4.3%, the highest level since October 2021.
Federal Reserve (Fed) Chair Jerome Powell stated this past week that the Fed's confidence in the "solid" economy and softening inflation statistics are growing expectations that the Fed could drop rates soon, despite some concern of an economic downturn in the US.
The CME FedWatch Tool indicates that financial markets have completely priced in a rate drop of a minimum 25 basis points (bps) at each of all three Fed meetings that are still scheduled for this year.
