Euro declines ahead of US jobs data

Euro declined in European trade against dollar as investors shun new positions ahead of the US jobs data for July. 

Euro hit four-week highs earlier this after data showed resilience in the European economy against the pressures from the Ukrainian war.

EUR/USD fell 0.2% to 1.0225, after rising 0.8% yesterday, the first profit in three days, following weak US data.

European Data

Recent European data showed the European economy grew way more than expected in the second quarter, while inflation hit record highs.

Europe's economy grew by 0.7%, up from 0.6% in the first quarter and beating estimates of 0.2%.

European inflation surged to 8.9% in July, a record high, above estimates of 8.7%.

Such data bolstered the case for a 0.5% rate hike by the ECB in the next meetings, after already hiking it by 50 basis points in July. 

US Data

Investors await crucial data on US labor sector later today, with the payrolls report expected to show the economy added 250 thousand new jobs, down from 372K in June, with unemployment expected at 3.6%.

Estimates

If US labor data proved strong, it'll bolster the case for a 0.75% hike by the Fed in September, in turn boosting the dollar against the common currency.