• EUR/USD trades with caution above 1.1000 as the focus shifts to the US NFP.
• A sharp expansion in the US ISM Service Prices Paid has renewed fears of price pressures remaining persistent.
• ECB Schnabel remained concerned about the growing economic risks in the Eurozone. 

EUR/USD trades in a tight range above the psychological support of 1.1000 in Friday’s European session. The major currency pair consolidates near 1.1030, while the US Dollar (USD) edges lower ahead of the United States (US) Nonfarm Payrolls (NFP) report for September, which will published at 12:30 GMT.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, drops slightly to 101.80. However, it holds this week’s sharp recovery from the yearly low near 100.10.

Investors will pay close attention to the US NFP report as it will likely influence the pace of the Federal Reserve’s (Fed) policy easing for the remainder of the year. Economists estimate that US employers hired 140K new employees, slightly lower than 142K in August. The Unemployment Rate is expected to remain steady at 4.2%. 

Average Hourly Earnings are estimated to have grown at a slower pace of 0.3% month-on-month from 0.4% in August, with annual figures growing steadily by 3.8%.

Looking at the CME FedWatch tool, traders appear to have already adjusted Fed rate cut expectations for November. The 30-day Federal Funds futures pricing data shows that the probability of a further cut in interest rates by 50 basis points (bps) in November has declined to 33% from 53% a week ago. Fed large rate cut prospects for November waned sharply after the upbeat ADP Employment Change data for September and JOLTS Job Openings data for August.