EUR/USD Surges Unexpectedly—Is the Fed’s Next Move About to Shake Your Portfolio to Its Core?
Ever wonder what happens when the mighty US dollar, usually the uncontested king of currencies, suddenly finds itself on the ropes? Friday’s market spectacle gave us a front-row seat as the EUR/USD pair jumped from 1.1391 to 1.1554, soaring more than 1% — a surge fueled largely by a sobering US jobs report that missed expectations by a wide margin. With July Nonfarm Payrolls tipping the scales at a mere 73,000 new jobs and stark downward revisions for May and June slashing a combined 258,000 jobs, the market frenzy was palpable. Investors didn’t hesitate to start pricing in significant easing, with Fed funds futures now signaling 62 basis points of rate cuts by year’s end and a hefty 76% chance of a September cut. Meanwhile, across the Atlantic, the EU threw a curveball, with inflation data beating forecasts and core inflation holding firm, defying hopes for relief. So, is the greenback losing its mojo just yet, or is this a signpost on a longer winding journey? Let’s dive in and unpack what these moves really mean for traders, investors, and the global economy alike. LEARN MORE
- EUR/USD rallies from 1.1391 to 1.1554, gaining over 1% on Friday.
- July Nonfarm Payrolls show just 73K jobs added; May–June revisions slash 258K jobs.
- Fed funds futures price in 62 bps of easing by December; 76% odds of a September rate cut.
- EU inflation data beats forecasts: HICP at 2.4% YoY, core HICP steady at 2.0%.
The EUR/USD surges more than 1% on Friday as the Greenback gets battered on a worse-than-expected jobs report in the United States (US), which triggered investors’ reaction to price in two interest rate cuts by the Federal Reserve (Fed). Data across the pond was shrugged off by traders, which sent the pair from around lows of 1.1391 toward 1.1597.
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