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Forex - EUR/USD falls on solid U.S. May jobs report

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Investing.com -

Investing.com - A solid U.S. May jobs report sent the dollar gaining against the euro on Friday, as markets bet the U.S. economy and labor market continue to recover and are in need of less monetary support from the Federal Reserve.

In U.S. trading, EUR/USD was down 0.17% at 1.3639, up from a session low of 1.3621 and off a high of 1.3677.

The pair was likely to find support at 1.3503, Thursday's low, and resistance at 1.3723, the high from May 21.

The U.S. Labor Department reported earlier that the economy added 217,000 in May, more or less in with expectations for a 218,000 increase, after a 282,000 rise in April, whose figure was revised down from a previously estimated 288,000 gain.

The private sector added 216,000 jobs last month, exceeding expectations for a 210,000 gain, which drew market applause and firmed the dollar.

The report also showed that the U.S. unemployment rate remained unchanged at 6.3% last month compared to expectations for a rise to 6.4%.

The data, viewed by markets as not exceptionally robust, was still strong enough to keep expectations firm for the Federal Reserve to continue winding down its monthly bond-buying program, which weakens the dollar by suppressing long-term interest rates.

The euro, meanwhile, continued to come under pressure after the European Central Bank cut its benchmark interest rate on Thursday to a record-low 0.15% from 0.25%, cut its deposit rate to -0.1% and said it will support the banking sector to spur lending via targeted long-term credit injections.

Elsewhere on Friday, official data revealed that Germany's trade surplus widened to €17.7 billion in April from €15.0 billion in March, whose figure was revised up from a previously estimated surplus of €14.8 billion. Analysts had expected the trade surplus to widen to €15.2 billion in April

Elsewhere, the euro was down against the pound, with EUR/GBP down 0.01% at 0.8121, and down against the yen, with EUR/JPY down 0.08% at 139.80.

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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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