Euro futures continued to move lower, reaching 1.1643, the lowest level since early December. The downward trend, which has persisted since late December, is largely driven by a firmer U.S. dollar following stronger labor market data from ADP, JOLTS, and weekly claims. This data has reduced expectations for first-quarter rate cuts. Volatility moved higher as the market prepares for major event risk, including the upcoming nonfarm payrolls report and the University of Michigan sentiment data, which features critical one-year and five-year inflation components.
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