Dollar Heads for Fourth Straight Weekly Gain vs Euro Amid Hawkish Fed Expectations
The US dollar is poised to extend its winning streak against the euro for a fourth consecutive week, driven by rising US Treasury yields and expectations of continued hawkish interest rate policy from the Federal Reserve.
Despite a weaker-than-expected jobs report in September, which saw US job growth fall short of economists' estimates and the unemployment rate edge up to 4.2%, the greenback remains underpinned by its multi-decade high yields, as well as concerns over the fiscal outlook in parts of Europe.
US Treasury yields are currently trading at 5.191% after slipping following the jobs report, but remain a key support for the dollar amid rising crude prices and expectations of further tightening from the Fed.
The euro is on track to post its fourth straight week of losses against the dollar, with its longest such stretch since mid-May 2025.