On Monday, September 15, 2025, the EUR/USD exchange rate increased in global forex markets as investors priced in expectations of an upcoming interest rate cut by the US Federal Reserve. This development took place amid growing concerns about the US labor market's slowdown, which has heightened speculation that the Fed will ease monetary policy to support the economy.

The US dollar weakened against the euro as traders anticipated the Federal Reserve's decision to reduce interest rates, expected to be announced later this week. The prospect of rate cuts has weighed on the dollar's value, leading to gains in the EUR/USD pair.

Market participants are closely watching the Federal Reserve's upcoming policy meeting, where a 25 basis points rate cut is widely anticipated, following signals from Fed Chair Jerome Powell and recent economic data indicating labor market softness. This expected monetary easing contrasts with the European Central Bank's current stance, contributing to the euro's relative strength.

The shift in currency valuations reflects broader investor sentiment about the US economy's trajectory and the Federal Reserve's response to emerging economic challenges. The euro's appreciation against the dollar on Monday underscores the impact of central bank policy expectations on forex markets.

Source: FXStreet, published September 15, 2025, 23:04 GMT (https://www.fxstreet.com/news/eur-usd-climbs-as-fed-cut-bets-weigh-on-us-dollar-202509152304)