The EUR/USD currency pair jumped to daily highs. That spike came right after the release of the most recent U.S. Nonfarm Payrolls report, which showed a net rise of just 73,000 jobs last month — a massive disappointment. The euro was popping on Friday, up sharply on the day, as it shot up over 1.1460 area. This rally happened as the U.S. dollar faced intense selling pressure. This change in currency dynamic is a manifestation of the divergent economic conditions between the euro area and the United States.
These disappointing U.S. job growth numbers have only added to the dollar Greenback’s woes. Analysts said disappointing numbers from the Nonfarm Payrolls report have cast fears over the resilience of the U.S. labor market. This ambiguity has led investors to make the euro their unit of choice.
Gold continues to new highs a… Gold hits record highs above $3,330 after US NFP,- [source]
Turbulence in the foreign exchange market hurt exports, gold prices jumped as usual. They surged to new records above $3,330 per troy ounce immediately following publication of the U.S. jobs report. Gold’s safe haven status has become more attractive on the back of weaker-than-expected payroll numbers. Friday afternoon proved to be a perfect example of this.
Equally important has been the unexpected resilience of the euro area economy that has underpinned this shift. During the peak summer months, early signs are pointing to the region’s continued unexpected resilience from global economic headwinds. An EU-U.S. trade deal would boost the euro area’s outlook even more. Investor sentiment is being further propelled by accelerated spending plans from Germany.
Reflecting this state of affairs, the European Central Bank (ECB) has recently taken a fresh look at the stance of its monetary policy. Today’s ECB communications indicate that the ECB does not see any further cuts in scope. This suggests a cautious mindset around any future monetary easing moves. Risks remain heavily in favor of a potential final cut. As with a potential interest hike, this may occur later this year or early 2026, depending on economic indicators.
As analysts continue to monitor wage indicators in the U.S., any signs of further softening could pave the way for an “insurance cut” from the ECB. It’s hard to overstate the market-moving potential of such moves, in both currency and commodity markets, as traders react to evolving economic data.
Brokers with competitive spreads and fast execution capabilities are preparing for an increased interest in trading EUR/USD in 2025 as market dynamics shift.