• EUR/USD clings to gains near 1.1630 as Fed’s Waller is seen supporting holding interest rates steady this month.
• Fed’s Waller said he is finally seeing some signs of progress in inflationary pressures.
• Investors keenly await the US NFP data for August.

The Euro (EUR) holds onto previous day’s gains at around 1.1630 against the US Dollar (USD) during the Asian trading session on Friday. The major currency pair gained significantly on Thursday as the US Dollar faced sharp selling pressure, following dovish remarks from Federal Reserve (Fed) Governor Christopher Waller.

At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades close to Thursday’s low near 99.00.

On Thursday, Fed’s Waller said in the Reuters NEXT Newsmaker event that he would support holding the policy rate steady at the September policy meeting if August inflation data shows progress towards the 2% target.

Fed’s Waller didn’t rule out the possibility of hiking interest rates this month if inflation figures come in hot, but his remarks that he is “finally seeing some signs of disinflation in recent data”, indicated that he could incline towards maintaining the status quo.

Meanwhile, investors await key United States (US) Nonfarm Payrolls (NFP) data for August, which will be published at 12:30 GMT.

EUR/USD Technical Analysis

In the daily chart, EUR/USD trades at 1.1630. The pair holds above the 100-day simple moving average (SMA) at 1.1564, keeping the near-term bias mildly bullish as recent gains remain supported by this underlying trend indicator.

The Relative Strength Index (RSI) around 57 suggests positive but not overstretched momentum, hinting that buyers retain the upper hand while avoiding overbought conditions.

On the downside, initial support is seen at the 100-day SMA near 1.1564, where a break would expose a deeper pullback toward prior daily lows. Looking up, the major currency pair could extend its upside towards the August high at 1.1720.