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EUR/USD Drops As US NFP Report Reinforces Current Fed Policy
Friday, 4 July 2025 06:08 WIB | EUR/USD |EUR/USD

The euro weakened against the US dollar on Thursday following the release of June employment figures in the United States (US), which showed why the Federal Reserve (Fed) is not ready to ease borrowing costs. At the time of writing, EUR/USD was trading at 1.1744, down 0.45%.

The Nonfarm Payrolls (NFP) report took center stage on Thursday, as it dropped in the shortened week for the US Independence Day. The data dashed investor expectations for a rate cut, beating estimates and May's figures. Additional metrics showed that the Unemployment Rate fell and Average Hourly Earnings held steady.

Recently, breaking news revealed that US President Donald Trump's "One Big Beautiful Bill" has been passed by the US Congress and is expected to be signed on July 4, at 5:00 p.m. EST, according to the White House.

Across the Atlantic, HCOB Services PMIs were revealed across the European Union. The figures showed an improving economic outlook, but the German Services PMI remained in contraction territory. The European Central Bank (ECB) released its latest Meeting Minutes, which revealed that some policymakers were keen to keep interest rates unchanged.

Looking ahead in the week, traders will be looking ahead to the release of German Factory Orders, ECB speeches, and the release of the European Union's Producer Price Index (PPI). (alg)

Source: FXstreet

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