EUR/USD enters a bearish consolidation phase after last week’s downfall to mid-1.0900s.
The USD preserves the post-NFP gains to a multi-week top and caps the upside for the pair.
Bets for another ECB rate cut in October undermine the Euro and further act as a headwind.
The EUR/USD pair kicks off the new week on a subdued note and consolidates last week's heavy losses to its lowest level since mid-August touched in the aftermath of the upbeat US employment details on Friday. Spot prices currently trade around the 1.0975 region and seem vulnerable to prolong the recent sharp pullback from a 14-month top – levels just above the 1.1200 mark.
The US Dollar (USD) stands tall near a seven-week top as traders further trimmed their bets for another oversized interest rate cut by the Federal Reserve (Fed) in November on the back of surprisingly strong US jobs data. The headline NFP showed that the economy added 254K jobs in September, surpassing consensus estimates by a big margin, and the Unemployment Rate unexpectedly slipped to 4.1%. This provided evidence of a still resilient US labor market, while higher-than-expected growth in the Average Hourly Earnings revived inflation fears, smashing hopes for a more aggressive policy easing by the Fed.
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