{
  "id": 18437936,
  "title": "Euro weakens to near 1.1200 as traders await US jobs data",
  "url": "https://urgent.news/2026/11/06/euro-weakens-to-near-1-1200-as-traders-await-us-jobs-data",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-06T02:02:36.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/euro-weakens-to-near-11200-as-traders-await-us-jobs-data-202611060202"
  },
  "original_language": "en",
  "account": "The EUR/USD currency pair slipped to near 1.1215 at the beginning of the Asian session on Friday due to a cautious market sentiment. However, the potential downward trend for the pair may be limited by the European Central Bank's (ECB) hawkish outlook. ECB Governing Council member Joachim Nagel stated that the bank is likely to raise borrowing costs next month due to the deteriorating inflation outlook. ECB policymaker Klaas Knot reiterated that the central bank will likely maintain a hawkish stance and remain vigilant against inflation shocks. Economists anticipate a final rate move in the coming month, but they believe tightening measures may persist into 2027. A decline in US Treasury yields could negatively impact the US Dollar and provide a boost to the Euro pair. The two-year yield, more sensitive to interest rate expectations, dropped about 10 basis points overnight to 4.47%. This shift in bonds also reflected revised Federal Reserve expectations, with Fed funds futures reducing the probability of a 25 bps interest rate increase in December to approximately 70% from over 70.9% on Thursday, according to the CME FedWatch tool. Traders will rely on the upcoming US September jobs data to assess the Federal Reserve's rate trajectory. Economists forecast that the Nonfarm Payrolls (NFP) will increase by 65,000 jobs in September, with the Unemployment Rate remaining steady at 4.2%. Recent labor market data suggests ongoing improvement, which is expected to continue with this report, according to MUFG analysts. Deutsche Bank analysts note that a relatively calm data calendar still delivered a significant signal on price dynamics through the Euro Area flash CPI print for October. The headline inflation rose to a three-year high of +4.0% in October, while core inflation stayed at +2.5%. This led to a significant drop in inflation expectations, with the Euro 1-year inflation swap dropping to a two-month low of 3.10% and the 1-year US inflation swap hitting a two-month low of 2.16%. The shift in inflation swaps coincided with a strong rally in European sovereign bonds, with 10-year bund yields decreasing by -5.8 basis points to 3.27% and 10-year OAT yields falling by -17.6 basis points to 4.77%. This compression also affected the core-periphery spread, pushing the Franco-German 10-year spread down by -11.8 basis points to 150 basis points, marking its tightest level in recent weeks. ECB President Lagarde's speech received a score of 6.2/10 on the FXS Speechtracker, modestly above the historical average of 5.6/10, indicating a slightly more impactful and hawkish tone. Her comments emphasized the necessity of applying tools to prevent runaway inflation and highlighted the ECB's cautious stance on external risks, which could affect the Euro through growth and trade channels. The Euro is the official currency of 20 European Union countries in the Eurozone. It is the second most traded currency globally, behind the US Dollar, accounting for 31% of all foreign exchange transactions in 2022, with an average daily turnover of over $2.2 trillion.",
  "summary": "The EUR/USD pair loses ground to near 1.1215 during the early Asian session on Friday, pressured by a cautious mood. However, the potential downside for the pair might be limited amid the hawkish stance from the European Central Bank (ECB).",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "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."
}