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Forex - Euro little changed against firm dollar

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Investing.com - The euro was little changed against the firmer dollar on Monday as Friday's stronger-than-forecast U.S. employment data continued to underpin demand for the greenback.

EUR/USD hit 1.3230 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3211, dipping 0.7%.

The pair was likely to find support at 1.3100 and resistance at 1.3284, Friday's high.

Official data on Friday showed that the U.S. economy added 175,000 jobs last month, slightly more than the 170,000 gain forecast by economists, indicating that the economic recovery is continuing.

However, the unemployment rate ticked up to 7.6% from 7.5% in April, dampening expectations that the Federal Reserve will start to unwind its asset purchase program this year.

In the euro zone, the Sentix index of investor confidence rose to minus 11.6 in the current month from minus 15.6 in May, improving for a second successive month as a rate cut by the European Central Bank and the formation of a government in Italy helped to bolster sentiment.

The euro was sharply higher against the weaker yen, with EUR/JPY advancing 1.18% to 130.46. The yen weakened on Monday following strong gains in Japanese equities overnight.

In Japan, revised data on Monday showed that the economy expanded by 1.0% in the first quarter, up from a preliminary estimate of 0.9%.

A separate report showed that the country posted a larger-than-forecast current account surplus in April, as the weaker yen boosted the value of income from overseas investments.

Elsewhere, the single currency was little changed against the pound, with EUR/GBP edging up 0.02% to 0.8502.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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