{
  "id": 10898911,
  "title": "Euro remains depressed near yearly lows amid soft German data",
  "url": "https://urgent.news/2026/09/30/euro-remains-depressed-near-yearly-lows-amid-soft-german-data",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-30T08:24:51.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/euro-remains-depressed-near-yearly-lows-amid-soft-german-data-202609300824"
  },
  "original_language": "en",
  "account": "The Euro (EUR) continued its downward trend against the US Dollar (USD) on Wednesday, as Eurozone data failed to provide any significant support. The EUR/USD pair bounced back to 1.1350 after touching 16-month lows at 1.1312 on Tuesday, but it is expected to record its weakest monthly performance in over a year. This decline can be attributed to the Federal Reserve's (Fed) hawkish stance, which has strengthened the USD across the board.\n\nGermany's unemployment figures were released on Wednesday, showing that the Unemployment Rate remained steady at 6.4% in August. However, the number of jobless workers increased by 12,000 from 4,000 in July, which is more than double the market consensus forecast of 5,000. This data fails to bolster the Euro, as it indicates a weakened labor market in the Eurozone.\n\nMeanwhile, Germany's retail sales data showed that consumption contracted for the second consecutive month in August, falling by 0.4% after a 2.5% decline in July. The year-on-year (Y-o-Y) reading revealed a 1.3% rebound, following a 3.4% drop in July, but this figure was below the market's expectation of a 2% increase. These weak retail sales further undermine the Euro's position, as they suggest a slowdown in consumer spending within the Eurozone.\n\nIn France, preliminary Consumer Price Index (CPI) data unveiled that inflation accelerated to a 3.4% yearly rate in September, from 2.6% in August, surpassing the 3% market consensus. Additionally, France's Producer Price Index eased to 1% in August from 1.3% in July, while Consumer Spending contracted by 0.5% in the same month, contrary to expectations of a flat reading. The sharp rise in France's public debt pile to EUR 3,596 trillion in June, which now accounts for 119% of its Gross Domestic Product (GDP), adds to the Euro's vulnerability. With political deadlock in France, no convincing savings plan is expected until next year's election.\n\nFrench public debt levels have reached an all-time high since 1946, and the yield gap between French and German treasury bonds has surged to 115 basis points, a level not seen since 2012. This widening gap has put markets on edge about the potential recurrence of a credit crisis in the Euro Area. Analysts at ING predict that the Euro may recover if the Fed fails to meet market expectations of a hawkish stance. However, they also caution that a hot US data release and sustained hawkish Fed expectations could lead to another bearish drop in EUR/USD, potentially reaching 1.10.",
  "summary": "The Euro (EUR) has trimmed some losses against the US Dollar (USD) on Wednesday but remains on the defensive, as data from the Eurozone fails to inspire, while France's ballooning debt starts to raise eyebrows.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "FXStreet",
        "title": "Euro softens below 1.1350 on Lagarde's dovish tilt, German Retail Sales data in focus",
        "url": "https://urgent.news/2026/09/30/euro-softens-below-1-1350-on-lagardes-dovish-tilt-german-retail-sales",
        "published": "2026-09-30T00:34:22.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}