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Forex - U.S. dollar holds steady against euro, yen in quiet trade

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Investing.com -

Investing.com - The U.S. dollar stabilized against the euro and the yen on Monday, after coming under pressure on Friday following the release of disappointing U.S. employment data.

The Labor Department reported Friday that the U.S. economy added 126,000 new jobs in March, the smallest increase since December 2013. Economists had forecast jobs growth of 245,000 last month.

The surprisingly weak report added to concerns over the outlook for economic growth after other recent economic data pointed to a slowdown at the start of the year.

A slowing labor market could prompt the Federal Reserve to reconsider a planned increase in interest rates. Last month the Fed indicated that the first rate increase could come as soon as June, but added that continued improvement in labor markets would be a key factor it would consider.

Later in the day, the U.S. Institute of Supply Management is to release data on service sector activity as investors look for further indications on the strength of the economy and the future path of monetary policy.

EUR/USD was up 0.06% to 1.0978 during European morning hours, extending strong gains from the previous session.

The single currency found further support from hopes that Greece will repay the International Monetary Fund on time. Athens is on the hook for a roughly €450 million loan repayment to the IMF due this Thursday.

Meanwhile, USD/JPY inched up 0.04% to 119.01, bouncing off the previous session's lows of 118.72.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.06% to 96.90.

Trading activity is expected to remain light, with markets in Australia, New Zealand, China, Europe and the U.K. all closed for holidays.

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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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