Bureau OF Labor Statistics

The S&P 500 and Dow Jones remain supported by softer inflation and weaker job growth, which have eased pressure on the Federal Reserve to raise rates. Still, new drone tariffs, elevated Treasury yields and a widening budget deficit are adding fresh uncertainty to the bullish outlook.

EUR/USD climbed to its strongest level since June 15 after weak US labor data pressured the dollar and revived bullish momentum. Traders are now watching the upcoming US consumer inflation report as the pair holds above key technical levels.

EUR/USD extended its recovery to its strongest level since June 17 as Eurozone PMI data improved and crude oil stayed under pressure. Technical traders remain focused on support near 1.1487 and a potential move toward 1.1620 if momentum holds.

GBP/USD traded around 1.3450 as markets looked ahead to services PMI releases from both the United States and the United Kingdom. Technical traders are watching whether a developing bullish flag can keep upside pressure in place toward 1.3550 or whether a break below 1.3400 weakens the setup.

AUD/USD held recent gains after softer U.S. inflation figures sharply reduced expectations for a July Federal Reserve rate increase. Traders are now watching whether the pair can defend support near 0.6970 and 0.6960 while testing resistance around 0.7020 and 0.7050.