Euro weakness took over from Dollar strength | FXStreet

EUR/USD fell below 1.12 this morning for the first time since May 2025, extending a slide that began after a hawkish Fed pushed the pair down from the 1.16+ area in mid-September. The euro’s weakness replaced a period of dollar strength and broke technical support after EUR/USD traded in a sideways range throughout summer 2025. A weaker U.S. payrolls report Friday (+29k versus +90k consensus) did not stop the greenback’s resilience. Separately, the French 10-year OAT swap spread rose from 80 bps at end-August to a new record above 140 bps last week, highlighting rising European fiscal stress. Market focus also includes EMU inflation, with September CPI at 0.6% m/m and 3.8% y/y.