EUR/USD Slides as Blowout US Jobs Data Fuels Fed Hike Bets
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A stronger-than-expected US labor market print has reignited dollar demand, dragging EUR/USD lower as traders reassess the Fed's next move. Equity markets on Wall Street slipped in tandem, with the Dow, S&P 500, and Nasdaq all retreating as the blowout jobs figures raised the probability of renewed tightening.
For euro bulls, the setup is uncomfortable. A resilient US labor market undercuts the disinflation narrative that had supported dollar softness earlier in the cycle, giving the Fed cover to keep policy restrictive for longer.
Unless eurozone data surprises to the upside or US inflation cools sharply, EUR/USD risks staying capped as rate differentials continue to favor the greenback.