The EUR/USD currency pair has continued to pick up steam, trading near daily highs of about 1.1680. What caused this dramatic spike was the release of the US Job Openings and Labor Turnover Survey (JOLTS) report for July. The release of JOLTS last week revealed the largest drop in total job openings ever. That was the good news. Job openings disappointed, coming in at 7.181 million versus an expected 7.296 million. This disappointing figure sparked the other leg of renewed selling pressure on the US Dollar.
Ultimately, we should view that as the Euro continues to strengthen, a very important sign of the change in market sentiment. Traders are still responding to the unprecedented tightness in the US labor market. Unsurprisingly, the job opening rate has dropped to a cycle low of 4.3%. For the first time since 2021, there are fewer job openings to unemployed workers, unified by that ratio falling under 1.0. There’s now under a job opening for every unemployed. This points to a complicated and fragile quid pro quo in labor relations.
Alarm bells should ring from the JOLTS report for a disturbing job market. Workers and employers are both waiting for big shoes to drop, evident in the persistently low and stable hire and layoff rates. Chair Jerome Powell has noted the “curious” balance in the labor market, indicating that current conditions could be precarious moving forward.
Financial analysts too, are watching primary indicators tied to the labor market. Their sharpest focus is on the next set of reports, and particularly on the Federal Reserve’s Beige Book. This report should give the Fed more clarity into current economic conditions and will most likely guide future decisions on monetary policy.
The new economic data has had consequences on other commodities and FX pairs. Gold has kept up a bothersome level of strength, recently trading near $3,570 per troy ounce, continuing to test its all-time record highs. At the same time, GBP/USD has begun to flex its muscles, picking up momentum around 1.3450.
With an increased focus on regulatory scrutiny, the current environment has made prudent and informed trading strategies an imperative. Traders looking to tackle the EUR/USD market head-on need to select a broker that offers low spreads. Secondly, they need to find ones that offer fast execution and strong trading platforms. Best brokers list trending among investors looking for the best conditions to trade EUR/USD 2025.
When it comes to executing trades, knowing the different order types is important. For example, the familiar stop limit order works very differently from a regular stop order. In this case, a trader may want to enter a sell stop at $67. If the price of the stock drops to this or less, the trade is converted to a market order and fills at the best price available. Conversely, with a stop limit order set at $67, the trade will only execute at $67 or better if triggered.
As market participants prepare for a slew of key economic data in the coming weeks, sentiment is digesting and remaining guarded but watchful.
“All eyes on NFP report as Fed rate cut bets intensify.” – https://www.fxstreet.com/analysis/week-ahead-all-eyes-on-nfp-report-as-fed-rate-cut-bets-intensify-video-202508291323