Ella 
In early trading in Asia on Monday, the euro/dollar strengthened for the fourth consecutive day to around 1.0765. USD weakness is providing some support for EUR/USD. Traders were awaiting German and euro zone Hamburg Purchasing Managers’ Index (PMI) data, as well as euro zone producer price index (PPI) due later in the day.
The latest U.S. employment data released by the Bureau of Labor Statistics on Friday showed U.S. job growth slowed more than expected in April. Nonfarm payrolls (NFP) in April were lower than expected, recording 175,000 after an increase of 315,000 in March (revised 303,000), the smallest increase since October 2023. Meanwhile, wage inflation, measured by changes in average hourly earnings, fell to 3.9% from 4.1%. The unemployment rate rose to 3.9% in April from 3.8% in March.
U.S. employment data was weaker than expected, raising the possibility that the Federal Reserve will cut interest rates in September. Financial markets have raised the probability of a rate cut in September to nearly 90% from 55% last week, the CME FedWatch tool showed. This in turn weighs on the US dollar and boosts EUR/USD.
In the euro zone, the final euro zone services PMI for April is expected to hold steady at 52.9, while the composite PMI is expected to remain at 51.4. In addition, the Eurozone producer price index (PPI) annual rate in March is expected to be -7.7%, compared with the previous value of -8.3%.
