The euro declined against the dollar after US nonfarm payrolls exceeded expectations, bolstering the greenback.
The EUR/USD pair dropped to a two-month low of 1.1559 as the US dollar strengthened following a robust US jobs report. The nonfarm payrolls data surpassed forecasts, reinforcing expectations of a resilient US economy.
Prior to the release, the pair had traded near 1.1600, with markets pricing in a modest uptick in employment. The stronger-than-expected print contrasts with recent softness in other US economic indicators, including manufacturing and consumer sentiment.
The move reflects shifting expectations for Federal Reserve policy, with traders now pricing in a higher likelihood of sustained interest rate hikes to curb inflation.