EURO LOOKS FOR DIRECTION AROUND 1.0950 PRIOR TO US NFP

Euro trades in a vacillating fashion vs. the US Dollar.

Stocks in Europe open Friday’s session with decent gains.

EUR/USD hovers around the mid-1.0900s amidst investors’ prudence.

The USD Index (DXY) gyrates around 102.50 amidst steady yields.

Retail Sales in the euro area come next on the domestic docket.

The Euro (EUR) has been trading without a clear direction against the US Dollar (USD), causing EUR/USD to remain within a narrow trading range around 1.0950 towards the end of the week.

A similar situation is observed with the USD Index (DXY), which is maintaining its trade in the mid-102.00s. This is happening due to the lack of a definite trend in US yields, even after the recent climb to the highest levels in nine months across various parts of the yield curve.

Meanwhile, investors are anticipated to pay close attention to the release of the Nonfarm Payrolls report for July. The report is expected to show an increase of around 200K jobs. This interest comes as the Federal Reserve has recently emphasized its reliance on economic data for its decisions, as highlighted during its event on July 26.

Currently, there is a lot of speculation that the Fed's rate hike in July might have been its last for the foreseeable future. Additionally, the possibility of the European Central Bank (ECB) implementing further tightening measures beyond the summer seems to be losing momentum.

In terms of US economic data, the focus later in the North American session will be on the July Nonfarm Payrolls report and the Unemployment Rate.