Euro Rises on Shift in Rate Differentials After Weak U.S. Jobs Data
Dow Jones
Aug 07
0857 ET - The euro rises to a seven-week high against the dollar after an unexpected decline in U.S. nonfarm payrolls in July. Payrolls fell 23,000 in July, whereas economists in a WSJ survey expected an increase of 83,000. The data prompted investors to trim Federal Reserve interest rate rise expectations with money markets now pricing in a 39% chance of a 25 basis points move in September compared to 56% beforehand, according to LSEG. The development shifts rate differentials in the euro's favor as markets see a 75% chance of the European Central Bank raising rates again in September. The euro rises to as high as $1.1580 from $1.1528 before the data. The ICE dollar index falls 0.5% to 99.42.
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