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Forex - EUR/USD hits 23-month highs as U.S. jobs data disappoints

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Investing.com - " The euro rose to 23-month highs against the dollar on Tuesday after data showed that the U.S. economy added fewer than expected jobs in September, cementing expectations that the Federal Reserve will delay plans to start tapering stimulus measures.

EUR/USD hit 1.3766 during U.S. morning trade, the highest since November 2011; the pair subsequently consolidated at 1.3765, gaining 0.63%.

The pair was likely to find support at 1.3661, the session low and resistance at 1.3809, the high of November 14, 2011.

The dollar dropped after the Department of Labor said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000. The previous month's figure was revised up to a gain of 193,000 from a previously reported increase of 169,000.

The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.

The jobs report was released 18 days behind schedule due to disruption caused by the recent U.S. government shutdown.

The disappointing data reinforced expectations that the Fed would postpone plans to start scaling back its asset purchase program until at least the beginning of next year.

The dollar fell sharply against the other main currencies last week as concerns over the impact of the 16-day government shutdown on the U.S. economic recovery saw investors reevaluate the timescale for a possible reduction in Fed stimulus.

Elsewhere, the euro was also higher against the pound and the yen, with EUR/GBP rising 0.25% to 0.8492 and EUR/JPY advancing 0.84% to 135.44.

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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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