The US labor market is showing a growing divide between weaker hiring and persistently low layoffs. Companies appear increasingly cautious about expanding their workforces, but there is still little evidence of widespread job cuts.

This combination points to a gradual cooling in employment conditions rather than a sharp deterioration.

The euro found stability as investors balanced geopolitical tension in the Middle East against inflation persistent above central bank targets. Steady economic expansion across the Eurozone supports expectations for continued monetary tightening in the near term.

US producer inflation showed further signs of easing in July, adding to expectations that the Federal Reserve may have more flexibility to keep interest rates unchanged. The Producer Price Index (PPI) for final demand was flat month-on-month, coming in below market forecasts.