EUR/USD Drops Nearly 0.7% as Strong US Jobs Data Boosts Fed Hike Bets

The EUR/USD dropped nearly 0.7% on Friday under heavy selling pressure triggered by a stronger-than-expected U.S. Nonfarm Payrolls report. U.S. employers added 165,000 jobs in October, surpassing the forecast of 65,000 and underscoring labor market resilience. The upbeat data raised the implied probability of a December Federal Reserve rate hike from 66% to approximately 80%, strengthening the U.S. dollar and lifting the DXY Index above 102 points. With U.S. benchmark rates at 4.00% versus the eurozone's 2.65%, widening monetary policy divergence continues to favor the greenback.