EUR/USD Holds Near 1.1800 as Fed Rate Cut Expectations Support Euro Bulls

EUR/USD Holds Near 1.1800, Bullish Setup Builds on Fed Cut Hopes

EUR/USD remains firm around 1.1800 for a second straight session during Thursday's Asian hours, as the US Dollar (USD) stays under pressure. Traders are increasingly betting on a Federal Reserve rate cut following dismal private-sector job data.

Weak US Jobs Data Lifts Euro

The US ADP Employment Change dropped by 33,000 in June, marking the first decline in over two years, following a downwardly revised 29,000 increase in May. Markets had expected a gain of 95,000, but the poor reading has boosted speculation the Fed could ease rates sooner than expected.

ECB's Wunsch Signals Comfort With Market Pricing

ECB policymaker Pierre Wunsch commented, "I am not uncomfortable with the market's interest rate expectations," suggesting the European Central Bank is in no rush to push back against dovish market positioning — a factor that may also favor further EUR/USD upside.

Key Data Ahead: NFP, PMI, and Earnings

Traders now await Thursday’s Nonfarm Payrolls (NFP) report, Average Hourly Earnings, ISM Services PMI, and S&P Global US PMI. These will provide fresh direction for USD crosses and confirm whether Fed easing bets are justified.

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