The euro remains above 1.16 as the market awaits US employment data and the European Central Bank meeting.

⑴ The euro remained stable above 1.16 on Friday, as investors awaited the upcoming U.S. employment data for new direction while focus gradually shifted to the European Central Bank's September 10 meeting. ⑵ The currency markets are still fully pricing in a 25-basis-point ECB rate hike to 2.5% next week, with current pricing showing nearly a 100% probability that the deposit rate will reach 3% by June 2027, implying two more rate hikes before mid-2027. ⑶ In terms of economic data, German factory orders rose by 2.5% month-on-month in July, down from a revised 3.7% previously but far exceeding the market's 0.3% expectation. ⑷ The U.S. dollar remains under pressure after Federal Reserve Governor Waller delivered dovish remarks, saying recent data show signs of disinflation and that if subsequent data confirm this trend, he would be inclined to keep rates unchanged at this month's policy meeting.