Euro extends gains on weak U.S. data – How long can it last?

Euro extends gains on weak U.S. data – How long can it last?

The euro hit $1.1779, its highest since late July, as weak U.S. labor data fueled expectations of a Fed rate cut next week. Slowing job growth and rising unemployment pressured the dollar, supporting EUR/USD.
While the Fed is expected to ease policy, the ECB is likely to keep rates steady, reinforcing euro strength. However, political uncertainty in France—after Prime Minister Francois Bayrou lost a confidence vote—may cap gains. Analysts expect a drag on the euro as the outcome was largely priced in.
Markets will focus on the Fed meeting. A confirmed cut could push the dollar lower and lift EUR/USD, but any ECB hints of easing could trigger a correction.