Euro Surges to Nine-Week Peak as US Dollar Weakens on Soft Jobs Data

The euro extended its gains against the US dollar on Thursday, climbing to 1.17521 USD, up 0.49% (+0.00575) from the previous session. This marks the strongest level for the euro against the dollar in more than nine weeks, reflecting growing confidence in the European currency as the dollar comes under pressure from disappointing US labor data and shifting market expectations.

Earlier in the week, new figures showed a noticeable rise in US unemployment claims, signaling a cooling in the American labor market and reinforcing concerns about the broader economic outlook. These weaker-than-expected readings came on the heels of another interest rate cut by the Federal Reserve, prompting investors to reassess expectations for future policy moves and leaving the dollar vulnerable across major markets.

As a result, the US dollar index has softened, and the euro has been one of the main beneficiaries, not only reaching near multi-month highs but also showing positive performance across multiple time frames. Over the past day, the pair rose nearly 0.5%, while the euro has also gained appreciably over the past week and month. Year-to-date, the euro’s strength against the dollar stands out with a notable rise, underscoring its resilience amid shifting global monetary trends.

Overall, the combination of weaker US economic signals and renewed appetite for the euro has propelled the currency pair to levels not seen since early October, highlighting the market’s growing focus on divergent economic conditions on either side of the Atlantic.