The EUR/USD pair hovered within a narrow range on Thursday, as traders exhibited caution ahead of Friday’s pivotal Non-Farm Payrolls (NFP) report. The currency pair, a barometer of risk sentiment and economic outlook, has remained confined to familiar levels as market participants await fresh data to guide expectations on the Federal Reserve’s policy trajectory.
Economic indicators earlier this week provided mixed signals. While U.S. job openings and private payroll data suggested labor market resilience, the eurozone’s continued struggles with growth and inflation have capped any sustained upward momentum for the euro. Analysts suggest that EUR/USD may experience significant volatility following the release of the NFP report, depending on its implications for the Fed’s interest rate stance.
With no clear catalysts to break the current range, the spotlight remains on whether the U.S. labor market will show signs of cooling or continued strength. A stronger-than-expected report could bolster the dollar, while weaker data might lend support to the euro. Until then, EUR/USD remains at the mercy of market speculation.
