Dollar heads for fourth straight weekly gain versus euro
TLT•The dollar was on track for a fourth straight weekly gain against the euro, supported by elevated U.S. Treasury yields and expectations the Federal Reserve will maintain a hawkish rate stance. U.S. employers added 29,000 jobs in September, below economists’ 90,000 estimate, while unemployment edged up to 4.2%.
1. Dollar gains persist
The dollar was on track for a fourth consecutive weekly gain against the euro on Friday, as elevated U.S. Treasury yields, European government bond market losses and expectations of a hawkish Federal Reserve supported the greenback. The euro was last up 0.39% at $1.1285 but remained on track for its fourth straight weekly loss against the dollar.
2. Jobs data and Fed bets
U.S. job growth was 29,000 in September, below economists’ expected 90,000, and the unemployment rate edged up to 4.2%. The 10-year Treasury yield slipped after the report and was last at 5.191%. Traders priced in an 86% chance the Fed would hold rates steady later in October, compared with 36% a week earlier.
3. European bond concerns
French and Italian government bonds faced selling pressure amid expectations of rising policy rates and political risks ahead of 2027 elections. The premium of French 10-year yields over German yields rose above 150 basis points, its highest since late 2011, as concerns about France’s finances and political turmoil grew.
