Dollar Set for Record Rise Against Euro Amid Energy Woes
The US dollar is poised for its largest monthly rise against the euro in 14 months, powered by robust US economic growth and rising interest rates. The greenback has gained nearly 2.5% on the euro this month and is set to notch a third straight quarterly rise.
Europe's energy and debt woes have weighed heavily on the euro, with benchmark gas prices spiking to their highest since 2022. French politics are also causing concern ahead of next year's presidential election, and the spread between the euro and franc has blown beyond 115 basis points to its widest since 2012.
Brent Donnelly, president of foreign exchange trading at analytics firm Spectra Markets, said 'the US economy is running hot, Europe is losing the global AI race, and energy supplies and French politics remain big concerns for the euro.'