{
  "type": "article",
  "title": "Euro Rebounds Near 1.1260 as Dismal US Jobs Growth Weakens Greenback",
  "summary": "The EUR/USD recovered to 1.1260 following a sharp miss in US Nonfarm Payrolls, which showed only 29K jobs added in September alongside substantial downward revisions to prior months.",
  "content": "A surprisingly weak United States labor market report triggered a broad pullback in the US Dollar, paving the way for the Euro to stage a sharp intraday rebound on Friday. After touching an intraday trough of 1.1221, the EUR/USD currency pair recovered toward 1.1260, booking an intraday advance of roughly 0.16%. The sell-off in the Greenback intensified as traders reassessed the likelihood of an interest rate increase by the Federal Reserve at its upcoming October monetary policy meeting.\n\nUS Nonfarm Payrolls Miss Market Projections\nData published by the US Bureau of Labor Statistics revealed that Nonfarm Payrolls grew by a mere 29,000 positions during September. This fell dramatically short of the consensus forecast of 90,000, underscoring a notable deceleration in hiring across American businesses.\n\nDeepening the bleak picture, employment gains from the preceding summer months were subjected to major downward adjustments. The preliminary figure for August was downgraded from 162,000 to 133,000. July was revised even more drastically, flipping from an initially reported addition of 21,000 positions into a net loss of 10,000 jobs. Combined, these retroactive changes erased 60,000 jobs from previously published data, highlighting that hiring conditions had deteriorated earlier than initially thought.\n\nUnemployment Edges Higher While Wage Inflation Moderates\nThe secondary components of the monthly jobs release offered virtually no support for the US Dollar. The nationwide Unemployment Rate ticked up to 4.2%, even as the Labor Force Participation Rate expanded from 61.6% to 61.8%. Simultaneously, Average Hourly Earnings rose by 3% on a year-over-year basis, trailing the 3.2% increase projected by economists. Softer wage growth helps alleviate persistent worries regarding wage-driven inflationary pressures, dampening expectations for prolonged policy tightening.\n\nReflecting the shift in sentiment, the US Dollar Index, which benchmarks the currency against a basket of six key global peers, slid approximately 0.23% to hover near 101.80. Even though bets on an October rate hike dwindled rapidly, pricing from the CME FedWatch tool indicated that market participants still attach an estimated 62% probability to an interest rate hike in December.\n\nStructural Headwinds and Technical Levels for the Euro\nWhile persistent European inflation prints may compel the European Central Bank to keep monetary conditions restrictive, the Euro continues to face notable internal headwinds. Ongoing unease regarding the fiscal trajectory of France and elevated crude oil prices continue to dampen investor appetite for the shared currency. Analysis from ING indicates that French fiscal risk premiums continue to weigh on the Euro, while Deutsche Bank notes pressure stemming from broader European stress. Consequently, EUR/USD remains on course for a substantial weekly drop despite the post-payrolls bounce, having traded as low as 1.1312 earlier in the week, well below its January high of 1.2082 and marking its lowest level since May 2025.\n\nFrom a chart perspective, initial upside resistance stands at 1.1270, followed by a firmer hurdle at 1.1312. Above that, the 100-period simple moving average at 1.1319 and the 200-period simple moving average at 1.1360 define an overhead supply barrier. On the downside, immediate support emerges around 1.1215, backed by critical structural support at 1.1200, where buyers previously emerged. Live market readings show EUR/USD trading at 1.13 with a 14-day RSI of 17, placing the asset deep in oversold territory, while moving average alignment reflects a dominant longer-term downtrend with a death cross pattern.\n\nCross-Asset Reaction Across Currencies, Commodities and Crypto\nThe Greenback's slide sparked varied moves across international markets. The Australian Dollar climbed toward 0.6950 as expectations revived for a potential interest rate hike in November amid stubborn global yields and price risks. Meanwhile, USD/JPY struggled to maintain momentum near 158.00 after stronger-than-projected Tokyo CPI prints prompted traders to square positions ahead of the weekend.\n\nBenefiting from the retreating Dollar, spot Gold surged through the pivotal $4,200 per troy ounce threshold. In the digital asset sector, sentiment turned broadly positive, with Bitcoin reclaiming levels above $86,000, Ethereum rising past $2,700 while facing resistance near $2,800, and Ripple trading around $1.54. Moving into the upcoming week, financial markets will closely track the Federal Reserve minutes, ISM Services PMI, US Treasury debt auctions, ECB meeting minutes, Canadian employment numbers, and Japanese wage data.\n\nWhat this means for you\nThe sharp slowdown in US hiring has halted the Greenback's advance, creating ripple effects across global foreign exchange, commodity, and digital asset markets.\n\n• For Currency Traders: The EUR/USD pair has experienced a technical bounce from oversold levels near 1.1221. Market participants should monitor the key 1.1200 floor and the 1.1270 ceiling to manage short-term exposure effectively.\n• On Global Interest Rates: Expectations for an immediate October rate hike by the Federal Reserve have plummeted. A more cautious Fed reduces immediate upward pressure on borrowing costs and debt yields globally.\n• For Commodity Investors: Weakness in the US Dollar index has pushed Gold beyond the milestone of $4,200 per ounce. Continued Dollar softness could sustain higher valuations for precious metals in the near term.\n• For Crypto Market Participants: Dollar depreciation has fueled broader appetite for risk assets, lifting Bitcoin above $86,000. Traders should watch whether Ethereum can break overhead resistance at $2,800 to sustain this recovery.\n\nWhy this happened\nThe sudden retreat in the Greenback and the Euro's relief rally were triggered by a severe hiring shortfall and extensive negative revisions to previous employment data in the United States.\n\n• Sharp Payroll Contraction: Employers in the US added just 29,000 positions in September, missing the consensus forecast of 90,000 by a wide margin. This unexpected miss signaled a rapid cooldown in labor demand.\n• Substantial Retroactive Downgrades: Net revisions for July and August eliminated a combined 60,000 jobs, turning July's initial expansion into a net loss of 10,000 jobs. These downgrades confirmed that hiring momentum had already faltered.\n• Cooling Wage Pressures: Annual growth in average hourly earnings moderated to 3%, undershooting the 3.2% consensus. Lower wage inflation diminishes the urgency for the Federal Reserve to implement restrictive rate hikes in October.\n• European Macro Headwinds: Lingering fiscal strain in France and elevated energy costs continue to cap the Euro's upside. Consequently, structural selling pressure persists even as short-term technical buyers step in.\n\nQuestions & Answers\n\n1. How many jobs did the US economy add in September?\nUS Nonfarm Payrolls increased by only 29,000 in September, falling far short of market expectations of 90,000.\n\n2. What revisions were made to July and August employment numbers?\nAugust was revised down to 133,000 from 162,000, and July was downgraded from a 21,000 gain to a 10,000 job loss, reducing cumulative hiring by 60,000.\n\n3. Where did the EUR/USD pair trade following the NFP release?\nEUR/USD rebounded from an intraday low of 1.1221 to trade around 1.1260, gaining roughly 0.16% on the day.\n\n4. What were the figures for US unemployment and wage growth?\nThe Unemployment Rate ticked up to 4.2%, while Average Hourly Earnings increased 3% year-over-year, missing the 3.2% forecast.\n\n5. How did the US Dollar Index react to the employment report?\nThe US Dollar Index fell around 0.23% following the release, trading near the 101.80 mark.\n\n6. What are the market expectations for upcoming Federal Reserve rate decisions?\nExpectations for an October rate hike declined sharply, though markets still price in about a 62% probability of a hike in December according to the CME FedWatch tool.",
  "url": "https://trendkia.com/en/market/us-rojagara-ankaron-men-bhari-giravata-se-dollar-phisala-euro-men-1-1260-ke-kariba-lauti-rikavari-41972",
  "category": "Market",
  "publishedAt": "2026-10-02",
  "tags": [
    "EUR USD",
    "US Dollar",
    "Nonfarm Payrolls",
    "Federal Reserve",
    "Forex Market",
    "ECB",
    "finance"
  ],
  "language": "en",
  "site": "TrendKia"
}