- US Dollar holds onto important daily gains after NFP.
- Employment reports boost US dollar and yields.
- EUR/USD heads for a modest weekly loss.
The EUR/USD bottomed on Friday at 1.0140 and then rebounded. The recovery of the euro was not strong enough to regain 1.0200. Near the end of the week, the pair looks vulnerable, on the back of a stronger US dollar.
The July employment report showed the US economy added 528K jobs, much more than expected. US yields jumped after the report boosting the greenback across the board.
After NFP, the key report next week will be US inflation numbers. The July CPI is due on Wednesday and a monthly 0.2% increase is expected. On Thursday the PPI will be released. The numbers will be critical for Fed rate expectations. The employment report left the doors open to aggressive tightening.