Dollar Soars Against Euro Amid US Growth and European Woes
The dollar is poised to rise against the euro in September, marking its largest monthly gain in 14 months. According to Brent Donnelly, president of foreign exchange trading at Spectra Markets, '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.'
Overnight, the euro dipped to its lowest since May 2025, trading at $1.1312, and remained near this level in Asia. The euro is also testing support around 178 yen.
The dollar's rise against the euro comes as US interest rates continue to rise, while Europe faces energy and debt worries. This has led to a significant shift in options prices, favoring protection against further euro falls. Donnelly notes that strong US data will be needed for the dollar to make further headway.