Non-Farm Payroll data is about to be released, and EUR/USD enters a volatile range

The Federal Reserve kept interest rates unchanged at its July meeting on Wednesday, in line with market expectations, and EUR/USD fluctuated near key technical levels. The U.S. non-farm payrolls (NFP) number for July will be released on Friday, and the market is about to begin predicting the Federal Reserve's interest rate decision in September.

The EU's economic data in the second half of this week is relatively limited, causing investors to turn their focus to the upcoming non-farm payrolls data in the United States. Median market forecasts are hoping for a continued easing in the US jobs market, calling for net job additions of 175K in July, down from the previous print of 206K.

Federal Reserve Chairman Powell elaborated on the specific conditions needed to achieve a rate cut in September, including continued improvement in inflation trends and a stable or further slowdown in the U.S. labor market. This provides the market with clear standards for the important economic data to be released in the United States. The U.S. non-farm payrolls report due to be released on Friday is expected to further reduce the number of new jobs in July, so the report will meet at least one of the Federal Reserve's criteria.