EUR/USD holds gains above the round level of 1.0800 in Friday's New York as the United States (US) Nonfarm Payrolls (NFP) report showed that Average Hourly Earnings declines expectedly in June. Average Hourly Earnings data is a measure of wage growth that has been a major driving factor behind high inflation in the service sector. Annually, the wage growth measure declined to 3.9%, as expected, from May's reading of 4.1%. On month, the economic data grew at an expected pace of 0.3%, slower than the former release of 0.4%. This has diminished fears of price pressures remaining stubborn.

Meanwhile, the number of individuals hired by employers in June came in at 206K, higher than estimates of 190K but lower than the prior release of 272K. The Unemployment Rate rose to 4.1% from expectations and the prior release of 4.0%. Higher-than-expected payrolls and the expected decline in the wage growth measure would less likely influence market speculation for Federal Reserve (Fed) rate cuts.

The US Dollar (DXY) was already under pressure amid growing speculation that the Federal Reserve (Fed) will start reducing interest rates from the September meeting. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, has extended its losing spell for the seventh trading session and has posted a fresh three-week low near 105.00.

Traders raised rate-cut bets for September heavily due to various factors, such as Fed Chair Jerome Powell's sheer confidence that the central bank has made considerable progress in inflation, easing labor market strength, and contraction in the Services PMI.

The June ADP Employment Change report showed unexpectedly slowing private sector hiring. In the same period, the Services PMI showed a contraction in the sector and dropped to its lowest level in four years.

Source : Fxstreet