EUR/USD Gains as Soft US Labour Data Dents Fed Rate Hike Bets, Says Rabobank
Rabobank notes that recent EUR/USD strength stems from a softer dollar after weak US labour data reduced expectations for Federal Reserve rate hikes.
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The euro has held a modest upside bias against the US dollar, largely driven by dollar weakness, according to Rabobank Senior FX Strategist Jane Foley.
She explains that the recent EUR/USD move higher is not so much about euro strength but rather a repricing of the Federal Reserve’s rate path. Softer-than-expected US labour market data has prompted investors to scale back expectations for aggressive tightening, weighing on the greenback.
Market attention now turns to upcoming data and Fed commentary for further clues on the rate outlook.
Source: FXStreet Forex News