Traders reduce Federal Reserve rate-hike expectations after disappointing US jobs data, lifting EUR/USD to a seven-week high.
EUR/USD climbed to 1.1562 on Friday, approaching its 100-day simple moving average, as the US Dollar weakened. The move follows a softer-than-expected US Nonfarm Payrolls report, prompting traders to scale back bets on further Federal Reserve rate hikes.
The pair has gained ground for three consecutive sessions, marking its highest level in seven weeks. Prior to the NFP release, markets had priced in a higher probability of a Fed rate increase in December, but the disappointing jobs data shifted sentiment.
Immediate market reaction saw the Dollar Index (DXY) retreat, while Treasury yields dipped, reinforcing the EUR/USD rally.