Euro Rebounds as Weak US Jobs Data Weighs on Dollar

2026-10-02 13:03 By Joana Ferreira 1 min. read

The euro edged up to $1.126 after briefly falling to its lowest level in more than a year, as weaker-than-expected US jobs data weighed on the dollar.

The US economy added just 29,000 jobs in September, well below expectations of 90,000, boosting expectations that the Fed may keep rates unchanged at its upcoming meeting.

Meanwhile, Eurozone inflation accelerated to 3.8%, its highest since September 2023 and well above the ECB’s 2% target, driven largely by higher fuel prices.

Despite renewed inflationary pressures, concerns over France’s fiscal outlook continued to weigh on the euro after the government unveiled deficit-reduction plans that the fiscal watchdog described as based on “optimistic” assumptions.

Markets also expect the ECB to adopt a gradual approach to monetary tightening.

ECB official Isabel Schnabel said the coming months will be key to assessing the energy shock and determining the appropriate level of interest rates, signaling a cautious approach to further tightening.



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