EUR/USD and Fed/ECB Expectations💱 Forex•EUR/USD

EUR/USD Slides on Strong US Data, Divergent Fed/ECB Outlook

February 12, 2026, 06:03 AM151 words7 sourcesAI-Generated · Reviewed by editorial team
EUR/USD
EUR/USD Slides on Strong US Data, Divergent Fed/ECB Outlook

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The EUR/USD pair experienced volatility this week, initially dipping following a stronger-than-expected US jobs report which showed 130K jobs added in January and an unemployment rate of 4.3%. This data significantly reduced expectations for near-term Federal Reserve rate cuts, bolstering the US Dollar. However, the dollar's initial gains were partially offset by a weaker-than-expected US budget statement and a strengthening Japanese Yen following recent elections. The ECB is widely expected to maintain current interest rates, providing some underlying support for the Euro. Market focus has shifted to upcoming US CPI data, which will be crucial in determining the USD’s trajectory and influencing EUR/USD. BNY data suggests increased Eurozone asset allocator hedging on US portfolios is also supporting Euro holdings. While the US jobs report initially favored the dollar, the market remains cautious ahead of key economic releases, and the EUR/USD pair continues to oscillate within a narrow range, currently below 1.1900.

Source Articles

This article is based on analysis of 7 source articles from our news database.

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