EUR/USD Surges as Weak U.S. Jobs Data Forces Fed Rate Cut Bets
The EUR/USD pair advanced sharply, hitting 1.1714 during Friday’s New York session after the U.S. nonfarm payrolls report revealed only 22,000 jobs created versus expectations of 75,000. The unemployment rate ticked higher to 4.3%, while wage growth stayed steady at 0.3% month-on-month. That combination triggered an aggressive sell-off in the dollar, with the U.S. Dollar Index (DXY) sliding 0.70% to 97.57 and U.S. 2-year yields collapsing to 3.50%, the lowest in five months. Traders have now priced a 100% probability of a 25-basis-point rate cut at the September 17 FOMC meeting and a 14% chance of a 50-basis-point cut, dramatically shifting sentiment in favor of the euro.
Political Pressures in Europe Complicate the Rally for EUR/USD
Even with dollar weakness driving momentum, the euro is facing its own headwinds from…
