EUR/USD weakened during the North American session, down more than 0.23%, as market participants digested the US jobs report that strengthened the Federal Reserve's case for maintaining interest rates at its upcoming July meeting. At the time of writing, the pair was trading at 1.1695 after peaking at 1.1749.

Wall Street ended Thursday's session with gains as traders assessed the current US labor market situation. Initial Jobless Claims for the past week were below estimates and the previous reading, signaling strength. However, Continuing Claims rose to their highest level since 2022.

On Wednesday, the Fed released the minutes of its latest meeting, which revealed some disagreement among its members. Although two Fed Chairs were targeting a rate cut at the July 30 meeting, the majority only expected one cut, warning that rates could trigger a spike in inflation.

Recently, St. Louis Fed President St. Louis Fed President Alberto Musalem advocated delaying interest rate cuts while evaluating incoming data. Conversely, San Francisco Fed President Mary Daly added her name to the dove-leaning group, saying she supports two rate cuts, arguing that tariffs would have little impact.

Regarding trade news, US President Donald Trump's decision to impose 50% tariffs on Brazil sparked a reaction from Brazilian President Lula Da Silva, who threatened retaliation against the US.

In Germany, inflation remains well-controlled within the 2% target set by the Bundesbank and the European Central Bank (ECB).

Ahead of this week, the US economic calendar will feature speeches by Fed officials. In the European Union (EU), ECB officials will deliver remarks, along with the release of French inflation data. (alg)

Source: FXstreet