Ella 
EUR/USD slipped to key support near 1.0900 during the European session on Monday. The pair came under pressure as market sentiment turned extremely risk-off as tensions in the Middle East and a weak US July non-farm payrolls (NFP) report stoked fears of a recession.
S&P 500 futures suffered a bloodbath during Asian trading on Monday, signaling a clear decline in investor risk appetite. The 10-year U.S. Treasury yield hit a new yearly low near 3.67% amid speculation the Federal Reserve will decide to cut interest rates at its September meeting.
Iran-backed Hezbollah said it had fired dozens of missiles at Israel, pointing to an all-out war in the Middle East. The move was in retaliation for the assassination of Hamas leader Ismail Haniyeh in an Israeli airstrike in Tehran.
At the same time, the national employment report released last Friday showed that labor demand has slowed significantly. Employment came in at 114,000, below expectations of 175,000 and below June’s 179,000. The unemployment rate jumped to 4.3% from the expected 4.1%, the highest since November 2021. The report makes clear that the labor market is struggling to absorb the consequences of higher interest rates from the Federal Reserve (FED).
On Monday, investors will focus on the US July ISM services PMI data released at 22:00 Beijing time. The report is expected to show services sector activity expanding to 51.0 after shrinking to 48.8 in June.
In the Eurozone, the preliminary value of the Harmonized Index of Consumer Prices (HICP) rose in July, raising concerns about an interest rate cut by the European Central Bank (ECB) in September.
