Euro Rebounds as Weak US Jobs Data Weighs on Dollar
The euro edged up to $1.126 after briefly falling to its lowest level in more than a year, as weaker-than-expected US employment data weighed on the dollar. The US economy added just 29,000 jobs in September, well below expectations of 90,000, raising expectations that the Federal Reserve may keep interest rates unchanged at its upcoming meeting. Meanwhile, stronger-than-expected Eurozone inflation showed annual inflation accelerating to 3.8%, its highest level since September 2023 and well above the ECB’s 2% target, largely due to higher fuel prices. Despite renewed inflationary pressures, the euro remains under pressure as markets expect the ECB to tighten policy more gradually. ECB Executive Board member Isabel Schnabel said the coming months would be important for assessing the impact of the energy shock and determining the appropriate level of interest rates, signaling a cautious approach. The Eurozone’s weak growth outlook could also constrain further tightening.
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126 after briefly falling to its lowest level in more than a year, as weaker-than-expected US employment data weighed on the dollar. The US economy added just 29,000 jobs in September, well below expectations of 90,000, raising expectations that the Federal Reserve may keep interest rates unchanged at its upcoming meeting. 8%, its highest level since September 2023 and well above the ECB’s 2% target, largely due to higher fuel prices. Despite renewed inflationary pressures, the euro remains under pressure as markets expect the ECB to tighten policy more gradually.
ECB Executive Board member Isabel Schnabel said the coming months would be important for assessing the impact of the energy shock and determining the appropriate level of interest rates, signaling a cautious approach. The Eurozone’s weak growth outlook could also constrain further tightening.