EUR/USD cautious near 1.1100 as weak ADP data fuels Fed cut hopes

EUR/USD trades cautiously around the 1.1100 level following disappointing US ADP employment data that has reinforced expectations for Federal Reserve rate cuts. The private payrolls report showed significantly weaker job creation than anticipated, immediately weakening the dollar across major pairs. Markets are now positioning defensively ahead of Friday's crucial Non-Farm Payrolls release, which could confirm labor market softening and cement aggressive Fed easing expectations. The pair remains range-bound as traders await clearer directional catalysts, with technical resistance at 1.1150 and support at 1.1050. European economic concerns continue to cap euro gains despite dollar weakness. The soft ADP figures have shifted market focus entirely to US employment dynamics, with a weak NFP potentially triggering a sustained EUR/USD rally above 1.1200. Conversely, a strong jobs report could quickly reverse recent dollar losses.