Fundamental Market Analysis for August 7, 2026 EURUSDEuro/US DollarSAXO:EURUSDFresh-Forexcast2004Event to watch today: 15:30 EET. USD - Non-Farm Employment Change EURUSD: The euro begins the session against a mixed domestic backdrop. Eurozone inflation accelerated to 2.9%, while the core rate rose to 2.5%, maintaining expectations of further ECB policy tightening. Second-quarter economic growth was more resilient than forecast. However, the unexpected decline in Italian industrial production shows that the recovery remains uneven and is not providing the euro with an independent source of strength against the dollar. The main driver of the day is the US labor market report. The market expects employment growth to accelerate following the weak June result, while unemployment is forecast to remain at 4.2%. The Federal Reserve kept its policy rate within the 3.50–3.75% range in July and continues to emphasize that future decisions will depend on incoming data. Ahead of the release, this supports cautious demand for the dollar amid persistent inflationary pressure. The euro is receiving support from expectations surrounding the ECB, but this factor has already been largely priced in and is constrained by the uneven economic picture across the region. Unless US employment data comes in significantly below expectations, the dollar may retain the advantage. The baseline scenario allows for a moderate decline in EURUSD, while a weak US report remains the main risk to the selling idea. Trading idea: SELL 1.15250, SL 1.15550, TP 1.14550