EUR/USD remains on track to wrap up the week with small gains below 1.10

• EUR/USD looks to close fourth straight day in the positive territory.
• Greenback fails to capitalize on the mixed labour market data.
• FOMC Chairman Powell repeated that the economy was in a 'good place.'

After closing the previous three trading days in the positive territory, the EUR/USD fluctuated in a relatively narrow band on Friday despite the high-tier macroeconomic data releases from the United States (US). As of writing, the pair was trading at 1.0978, adding 0.3% on the day and remaining on track to register modest weekly gains.

USD valuation continues to drive the pair's action

The US Bureau of Labor Statistics on Friday reported that nonfarm payrolls in September increased by 136,000 to fall short of the market expectation of 145,000. However, despite this uninspiring reading, the unemployment rate fell to its lowest level in nearly five decades at 3.5% to help the Greenback limit its losses against its major peers. As we are approaching the end of the week, the US Dollar Index is down 0.05% on the day at 98.86.

Commenting on the data, "Payrolls did not offer the final blow that some were worried about following weak ISMs. As a result, risk may find some relief from today's number," TD Securities analysts said and added that they still expect the Federal Reserve to deliver a 25 basis point rate cut at its October meeting.

Meanwhile, the CME Group FedWatch Tool on Friday shows that markets are pricing a 75% probability of a rate cut in October, down from 88.7% seen on Thursday.

Finally, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, adopted an optimistic tone regarding the US economic outlook. "While not everyone fully shares economic opportunities and the economy faces some risks, overall it is — as I like to say —in a good place. Our job is to keep it there as long as possible," Powell stated.

Technical levels to watch for