The EUR/USD consolidates near the week's highs, shy of testing the 1.1700 figure on a week in whichthe US Dollar is poised to finish the week with over 1.84% losses against its peers. The hangover of last week's US Nonfarm Payroll figures, and subsequent worse-than-expected employment data, underpins the Euro, due to increasing chances that the Federal Reserve (Fed) will resume its easing cycle.

The EUR/USD trades at 1.1648, down 0.14% daily, as market mood is upbeat due to the chance that the Ukraine-Russia war could end. News of a possible Trump-Putin meeting next week leads some to expect a deal that could halt hostilities in Ukraine.

The shared currency reacted positively to the newswires, though it failed to edge higher as the Greenback staged a comeback, gaining 0.14% on Friday in the US Dollar Index (DXY).

Besides the data, the nomination of the Council of Economic Advisers Chairman Stephen Miran and rumors that Fed Governor Christopher Waller could be nominated as the next Fed Chair to succeed Powell, capped the Euro's advance to retest the YTD peak of 1.1829.

In the meantime, the St. Louis Fed President Alberto Musalem hit the wires, turned slightly more neutral, contrary to his hawkish stance, and said the Fed faces risks to both its inflation and jobs goals.

A muted economic docket in the European Union (EU) left traders adrift to ongoing developments in the US, alongside the usual geopolitical risks.

Next week, the EU's docket will feature inflation figures in Italy and Germany, the release of the ZEW Economic Survey in Germany and the EU. Additionally, traders will eye the release of the EU's Gross Domestic Product (GDP) print for Q2 2025.

Across the Atlantic, the US economic calendar will include remarks from Fed officials, the latest Initial Jobless Claims, Retail Sales figures, and the University of Michigan's Consumer Sentiment survey.

Source: Fxstreet