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Forex - EUR/USD drops as U.S. jobs numbers shoot past expectations

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Investing.com - The dollar strengthened against the euro on Friday after official data revealed the U.S. economy created more new jobs than expected in June and primed expectations for the Federal Reserve to wind down stimulus measures this year.

Stimulus programs such as the Fed's monthly USD85 billion asset-purchasing program tend to weaken the dollar to spur recovery, and talk of their dismantling bolsters the U.S. currency.

In U.S. trading on Friday, EUR/USD was down 0.63% at 1.2832, up from a session low of 1.2807 and off from a high of 1.2917.

The pair was likely to find support at 1.2796, the low from May 17, and resistance at 1.2917, the earlier high.

The Bureau of Labor Statistics reported earlier the U.S. economy added 195,000 nonfarm payrolls in June, well above analysts' calls for a 165,000 increase.

May's figures was revised upwards to 195,000 jobs from 175,000, while April's figure was revised upwards to 199,000 from 149,000.

The headline unemployment rate remained unchanged at 7.6% last month, while hour earnings rose 0.4% compared to market calls for a 0.2%.

The euro, meanwhile, saw homegrown downward pressure after European Central Bank President Mario Draghi said on Thursday the monetary authority expects to keep interest rates at current or lower levels for an "extended" period of time.

Draghi added risks to growth in the euro zone remain "on the downside" and added that monetary policy will remain accommodative for as long as is necessary.

The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP trading up 0.53% at 0.8614 and EUR/JPY trading up 0.29% at 129.55.

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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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