Soft U.S. jobs data pressures dollar as euro zone investor morale turns positive

The dollar weakened after a softer-than-expected U.S. jobs report, with sterling firming as traders reassessed the path of Federal Reserve policy. The pound's gains came primarily from dollar weakness rather than domestic data. In the euro area, the Sentix survey showed investor morale turning positive in August, indicating that respondents' assessment of current conditions and expectations has improved after a run of negative readings. Separately, Barclays said Chinese exports surged on demand tied to artificial intelligence hardware and green technology, and Bank of America said it sees the U.S. Treasury curve biased to steepen — a view consistent with expectations of easier front-end policy alongside persistent supply at the long end.