Euro Slips to $1.185 as Strong US Jobs Data Boosts Dollar

2026-02-11 14:30 By Joana Ferreira 1 min. read

The euro reversed early gains to trade around $1.185 as the US dollar strengthened following stronger-than-expected US jobs data, which dampened expectations for imminent Federal Reserve rate cuts.

Payrolls rose by 130,000 in January, the biggest increase in over a year, while the unemployment rate unexpectedly declined to 4.3%.

Traders now fully price in a Fed rate cut by July rather than June, with less than a 5% chance of a March move.

The single currency had earlier found support from indications that the European Central Bank remains largely unconcerned about the euro’s recent appreciation, as well as reports that Bank of France Governor François Villeroy de Galhau, viewed as dovish, will step down in June, well before his term was due to end in October 2027.

ECB President Christine Lagarde said last week that the euro area’s inflation outlook is in a “good place,” while warning that volatile incoming data should not drive policy decisions in isolation.



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