05.09.202514:01:25UTC+00Euro Tops $1.17

The euro surged past the $1.17 mark, reaching its highest point since late July. This movement was primarily driven by a broadly weakening dollar, spurred by U.S. employment data that indicated a further softening of the labor market. The report bolstered assumptions that the Federal Reserve might implement a rate reduction later this month, as markets are now factoring in approximately 66 basis points of easing by 2025. The U.S. economy added a mere 22,000 jobs in August, falling short of the 75,000 job increase that had been predicted, while the unemployment rate climbed to 4.3%, the highest level observed since 2021, aligning with market expectations. Attention is now turning towards the European Central Bank's meeting next week, where it is broadly anticipated that policymakers will maintain current interest rates for the second consecutive time, given the stable growth outlook and inflation close to target. The eurozone economy expanded by 0.1% in the second quarter, with inflation recorded at 2.1% in August. Meanwhile, fiscal concerns are resurfacing in Europe due to potential increases in defense spending and heightened investment in German infrastructure. Political focus is also shifting towards French Prime Minister François Bayrou’s confidence vote scheduled for September 8.