EUR/USD wavers as Eurozone jobs data signals potential ECB policy shift

EUR/USD is consolidating near 1.0980 as markets digest mixed Eurozone employment figures that could influence ECB monetary policy decisions. The latest Eurozone unemployment data showed a slight uptick to 6.5%, suggesting labor market softening that may prompt the ECB to reconsider its hawkish stance. This comes as European inflation indicators remain stubbornly above the 2% target at 2.8%, creating a policy dilemma for central bankers. Market participants are closely monitoring ECB officials' comments for hints about the December policy meeting, with futures pricing in a 65% probability of a 25-basis-point rate cut. Technical analysis shows EUR/USD trading within a tight range between 1.0950 support and 1.1020 resistance. A break below support could accelerate declines toward 1.0900, while clearing resistance might open the path to 1.1050. The pair's direction will likely depend on upcoming ECB communications and Friday's US employment report.