Euro Falls as U.S. Dollar Rebounds: Will the Direction of Monetary Policy Change?

Euro Falls as U.S. Dollar Rebounds: Will the Direction of Monetary Policy Change?

09.11.2026 New

On the 6th, the U.S. dollar gained ground in the foreign exchange market following strong results from the U.S. October employment report. Nonfarm payrolls rose by 165,000, and the unemployment rate stood at 4.1%—both figures were stronger than market expectations—causing the dollar-yen exchange rate to rebound from around 157.25 yen to around 158.58 yen.Meanwhile, Canada’s October employment report, released at the same time, showed a decline of 4,700 in the number of employed and an increase in the unemployment rate to 6.7%. These results highlighted the contrast between the U.S. and Canadian employment situations. At the start of the week, we will want to monitor the strength and weakness of U.S. interest rates and North American currencies.

European currencies fell against the dollar, with the euro and the pound declining following the dollar’s strength at the end of last week.The euro fell from around $1.1234 to as low as $1.1131 at one point, closing around $1.1138. The pound also fell from the mid-$1.34 range to around $1.3352, with resistance remaining even after the Bank of England’s rate hike the previous week.In European stock markets, Germany’s DAX index fell 1.92%, as concerns persisted over a global sell-off in tech stocks. The focus will be on whether the euro/dollar exchange rate can hold in the low 1.11 range.

Today’s key economic indicators include the release of Germany’s September trade balance at 4:00 p.m., which will provide insight into European economic trends. At 10:40 p.m., Federal Reserve Vice Chair Bowman is scheduled to speak, followed by Chicago Fed President Goolsbee at midnight; attention will be focused on their views regarding U.S. monetary policy.A speech by Bank of England Governor Bailey is also scheduled for 02:25 on the 10th. Ahead of the release of the U.S. Consumer Price Index on the 10th, we will be looking to gauge the differences in monetary policy outlooks between European currencies and the U.S. dollar.