The US dollar continued to trade with a bearish tone following the latest weaker-than-expected US jobs data, which heightened expectations of a potential Federal Reserve rate cut in September. Nonfarm payrolls for June came in below forecasts, with downward revisions to prior months, reflecting a cooling labor market. As a result, Treasury yields declined, increasing market speculation that the Fed could begin easing monetary policy later this year, contributing to broad-based dollar softness against major currencies.
Meanwhile, the euro and other G10 currencies gained against the USD amid risk-on sentiment and renewed investor confidence. The euro was further supported by reduced political uncertainty in France, following parliamentary elections that lessened fears of far-right leadership. Overall, market participants are now closely watching upcoming US inflation data and Fed commentary to gauge the timing and extent of future rate cuts.
Read more on EUR/USD trading.