Euro Extends Losses as Strong US Jobs Data Bolsters Dollar
The euro extended its losses, falling below $1.115 and approaching its weakest level in several months, as a stronger-than-expected US jobs report lifted the dollar. The greenback was already benefiting from safe-haven demand amid a global technology selloff, as sentiment towards AI stocks weakened on concerns that a Democratic sweep in the congressional elections could lead to tighter regulation and slow the industry's expansion. Meanwhile, ECB President Christine Lagarde said on Thursday that the ECB was monitoring incoming data to determine whether a rate hike would be warranted next month. Although the central bank kept interest rates unchanged in October, several policymakers, including the heads of the German and Italian central banks, have indicated that a December increase may be likely. Eurozone inflation rose to a three-year high of 4% in October, driven by higher energy costs, adding to the case for further monetary tightening.
The euro extended its losses, falling below $1.115 and approaching its weakest level in several months, as a stronger-than-expected US jobs report lifted the dollar. The greenback was already benefiting from safe-haven demand amid a global technology selloff, as sentiment towards AI stocks weakened on concerns that a Democratic sweep in the congressional elections could lead to tighter regulation and slow the industry's expansion. Meanwhile, ECB President Christine Lagarde said on Thursday that the ECB was monitoring incoming data to determine whether a rate hike would be warranted next month.
Although the central bank kept interest rates unchanged in October, several policymakers, including the heads of the German and Italian central banks, have indicated that a December increase may be likely. Eurozone inflation rose to a three-year high of 4% in October, driven by higher energy costs, adding to the case for further monetary tightening.