A disappointing US nonfarm payrolls report triggers USD selling, lifting EUR/USD 0.43% to 1.1570 as markets scale back Fed tightening expectations.
EUR/USD climbed 0.43% to 1.1570 after US nonfarm payrolls data missed forecasts, sparking a broad USD sell-off. The weaker-than-expected jobs report raised doubts over a Federal Reserve rate hike in September.
Prior to the release, markets had priced in a near-certain chance of a 25-basis-point increase. The dollar index fell sharply, extending losses from the previous session as traders reassessed the Fed’s policy path.
The move reflects growing concerns that labor market softening could curb inflation pressures, reducing the need for further monetary tightening.