Investing.com - The euro rose against the dollar on Friday after data showed that the U.S. economy added fewer-than-expected jobs last month, but the data did little to alter expectations that the Federal Reserve will continue to scale back its stimulus program.
EUR/USD rose to 1.3642, the highest level since January 30 and was last up 0.32% to 1.3634. For the week, the pair gained 0.83%.
The pair is likely to find support at 1.3551, Friday’s low and resistance at 1.3700.
The dollar slid after the Department of Labor said the U.S. economy added 113,000 jobs in January, well below expectations for jobs growth of 185,000, after December's lackluster gain of 75,000 jobs.
It was the weakest two-month stretch of job creation in three years as inclement weather contributed to a slowdown in hiring.
Yet the report also showed that the number of people participating in the labor force edged up to 63% from a 30-year low of 62.8% last month, while the unemployment rate unexpectedly ticked down to a five year low 6.6% from 6.7% in December.
The report was seen as unlikely to derail reductions in the Fed’s stimulus program. The bank announced a second $10 billion cut to its asset purchase program in January, reducing it to $65 billion-per-month.
The euro briefly dipped lower against the dollar earlier Friday after Germany's constitutional Court ruled that the European Central Bank’s bond-buying program may exceed its mandate, and referred it to European Court of Justice.
Following the ruling, the ECB reiterated that its bond purchasing program does not breach European rules and falls within its mandate.
In the week ahead, Fed Chair Janet Yellen is to testify to Congress on the bank’s semiannual monetary policy report in Washington. Her comments will be closely watched.
Friday’s preliminary data on fourth quarter euro zone economic growth will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, February 10
In the euro zone, France is to release data on industrial production.
Tuesday, February 11
Federal Reserve Chair Janet Yellen is to testify on the bank’s semiannual monetary policy report before the House Financial Services Committee, in Washington.
Wednesday, February 12
The euro zone is to release data on industrial production.
ECB President Mario Draghi is to speak at an event in Brussels.
Thursday, February 13
The ECB is to publish its monthly bulletin.
The U.S. is to produce data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The nation is also to release the weekly report on initial jobless claims.
Federal Reserve Chair Janet Yellen is to testify on the bank’s semiannual monetary policy report before the House Financial Services Committee, in Washington.
Friday, February 14
The euro zone is to release preliminary data on fourth quarter gross domestic product, the broadest indicator of economic activity and the leading indicator of economic growth. Germany, France and Italy are also to release preliminary estimates on fourth quarter growth.
The U.S. is to wrap up the week with the closely watched preliminary reading of the University of Michigan consumer sentiment index. The U.S. is also to release data on import prices and industrial production.