EUR/USD extends gains on soft U.S. jobs data

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Investing.com - The euro gained against the dollar in a quiet session on Monday as investors as avoided the greenback due to Friday's soft jobs report, though losses were slight as the jobs numbers weren't viewed as weak enough to alter the Federal Reserve's stimulus tapering.

In U.S. trading, EUR/USD was trading at 1.3642, up 0.05%, up from a session low of 1.3553 and off a high of 1.3652.

The pair was likely to find support at 1.3483, Thursday's low, and resistance at 1.3717, the high from Jan. 27.


The U.S. Labor Department reported on Friday that the economy added 113,000 jobs in January, less than an expected 185,000 increase.

While soft, the numbers weren't seen as weak enough to prompt the Fed to seriously delay tapering its USD65 billion in monthly bond purchases, which weaken the dollar to spur recovery by suppressing long-term interest rates.

Still, uncertainty surrounding the pace at which the Fed will taper due to soft economic indicators weakened the dollar in a session void of major economic indicators.

Investors also remained on the sidelines ahead of Federal Reserve Chair Janet Yellen's congressional testimony on Tuesday.

Meanwhile, the single currency remained under pressure after Germany's constitutional Court ruled at the end of last week that the European Central Bank's bond-buying program may exceed its mandate, and referred it to European Court of Justice.

Markets shrugged off data released earlier revealing that French industrial production fell 0.3% in December, compared to expectations for a 0.1% uptick. Industrial production in November was revised down to a 1.2% increase from a previously estimated 1.3% rise.

The euro was up against the pound, with EUR/GBP gaining 0.08% to 0.8315, and down against the yen, with EUR/JPY trading down 0.07% at 139.43.

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This article appears in: Investing , Forex and Currencies

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