The euro held steady against the dollar on Friday, as markets braced for the release of crucial U.S. employment figures. Investors are keenly anticipating the data, which is expected to provide further clues regarding the Federal Reserve’s plans for its monetary policy.

Analysts suggest that a strong jobs report could bolster the case for the Fed to begin scaling back its stimulus program sooner rather than later. Conversely, a weaker-than-expected report might prompt the central bank to maintain its current level of asset purchases for a longer period.

Currency traders are positioning themselves cautiously ahead of the release, leading to relatively muted trading activity. The euro’s stability reflects this wait-and-see approach, with market participants reluctant to make significant moves before the data is released and analyzed.

The U.S. jobs data is considered a key indicator of the health of the American economy and is closely watched by central banks and investors worldwide.