EUR/USD bounces after NFP misfire pummels Greenback

• EUR/USD bumps back over 1.0900 after bad US NFP print.
• Broad-market concerns of a US slowdown jumped on Friday.
• Coming up next week: US ISM Manufacturing PMI, EU Retail Sales

EUR/USD caught a ride higher on Friday after the Greenback got pummeled following a bad data beat in US Nonfarm Payroll (NFP) figures. Market fears of an accelerating economic slowdown in the US sparked a firm risk-off bid throughout global markets, but with US data going too far into the red too fast, the US Dollar got caught up in the stampede and tumbled across the board.

Forecasting the Coming Week: Focus remains on data and rate cut bets

The latest US NFP labor data revealed that the US added 114K net new jobs in July, falling short of the expected 175K. Additionally, the previous month's figure was revised down to 179K from the initial 206K. The US Unemployment Rate also increased to 4.3%, the highest level since November 2021, while the U6 Underemployment Rate rose to 7.8% from 7.4% as employed individuals faced challenges in securing jobs with sufficient hours.

Average Hourly Earnings growth slowed to 0.2% month-over-month, below the anticipated 0.3%, and the year-over-year wages growth decreased to 3.6% from the previous 3.8%.

Friday’s US NFP labor data dump showed the US added 114K net new jobs in July, well below the forecast 175K and the previous month’s figure was revised to 179K from the initial print of 206K. The US Unemployment Rate also ticked higher to 4.3%, the highest reading since November of 2021, while the U6 Underemployment Rate rose to 7.8% from 7.4% as employed people struggle to find jobs that provide enough hours.

Average Hourly Earnings growth also eased to 0.2% MoM from the expected hold at 0.3%, with YoY wages growth cooling to 3.6% from the previous 3.8%.