The dominant strengthening of the US dollar following the release of the NFP data last Friday has pushed the euro down to the lower band. Despite a slight technical rebound, the short-term market structure still places the euro in a vulnerable position. The NFP data fueled market expectations that the Fed could potentially raise interest rates in December 2026. Meanwhile, the ECB tends to opt for a looser policy or raise interest rates at a less aggressive pace than the Fed.
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