• EUR/USD rises above 1.0800 as the US Dollar slides on firm Fed rate-cut prospects.
• The Euro fails to capitalize on increased doubts over market expectations for two more ECB rate cuts this year.
• Investors await the US NFP for July.

EUR/USD hovers near the round-level figure of 1.0800 in Friday’s European session. The major currency pair is expected to remain on the sidelines as investors await the United States (US) Nonfarm Payrolls (NFP) data for July, which will be published at 12:30 GMT.

Economists estimate that 175K new workers were hired in July, lower than the former addition of 206K. The Unemployment Rate is expected to remain steady at 4.1%. 

Investors will also focus on the Average Hourly Earnings data, a key measure of wage growth that fuels consumer spending and eventually influences price pressures. Annually, the wage growth measure is estimated to have decelerated to 3.7% from the prior reading of 3.9%, with the monthly figure growing steadily by 0.3%. 

Ahead of the US NFP report, the US Dollar (USD) exhibits a subdued performance as a string of weak US economic data has pointed to a slowdown in the economy, which will add to reasons prompting the Federal Reserve (Fed) to begin reducing interest rates in September. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, drops to near 104.20.