EUR/IQD Price & Performance (EURIQD)

The EUR/USD currency pair has surged to a four-month high of 1.0850, driven by softer-than-expected US labor market data and a declining US Dollar Index. With US nonfarm payrolls missing estimates and wage growth slowing, traders are scaling back expectations for prolonged Federal Reserve rate hikes.123

German fiscal policy changes, including a proposed €500 billion infrastructure fund, have created significant market shifts. The reforms, aimed at loosening borrowing limits, are seen as potentially inflationary, prompting speculation that the European Central Bank may slow its rate-cutting cycle.134

Rising concerns over reciprocal trade tariffs between the US and Europe are dampening sentiment around the EUR/USD pair. Market participants are wary of potential economic disruptions as both regions prepare for tariff implementations, with Germany’s political developments adding to the uncertainty.356