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The euro strengthens versus the dollar as risk appetite soared amid China measures

04 Sep,2023
The euro strengthens versus the dollar as risk appetite soared amid China measures

On Monday, the euro appreciated versus the safe-haven currency as risk sentiment increased on hopes that China's stimulus measures would help to stabilize the economy. Meanwhile, positive U.S. jobs data increased speculation that the Federal Reserve may have reached the end of its rate-hike cycle.

Due to the fact that U.S. markets are closed on Monday, there will likely be little liquidity and few big bets.

EUR/USD climbed by 0.3% at $1.0800, just over a 10-week low versus the dollar reached last week. This summer, the euro has lost over 12% of its value.

The US dollar index that gauges the greenback dipped 0.14% to 104.09, but it still closed within a few cents of the two-month high of 104.44 it reached on August 25.

Meanwhile, figures released on Friday indicated that the number of jobs in the United States increased in August, but that pay growth slowed and the unemployment rate increased to 3.8%.

A series of economic indicators, including moderating inflation and a loosening labor market, have added to the sense that the U.S. economy is slowing down without abruptly slowing down, bolstering expectations for a gentle landing.

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