Investing.com - The euro ended the day little changed against the dollar on Friday despite a weaker than expected U.S. jobs report after a Federal Reserve official indicated that U.S. interest rates could still rise twice this year.
EUR/USD settled at 1.1404 late Friday, well below the eight-month highs of 1.1616 set on Tuesday. For the week, the pair was down 0.51%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ticked up 0.11% to 93.83 late Friday.
The index ended the week with gains of 0.89% after recovering from a trough of 91.91 hit on Tuesday, its lowest since January 2015.
New York Fed President William Dudley said Friday that it was reasonable to expect two rate hikes this year despite data showing that jobs growth increased at the slowest rate in seven months in April.
The Labor Department reported earlier in the day that the U.S. economy added 160,000 jobs last month, the smallest increase since September and well below jobs growth of 202,000 expected by economists.
The unemployment rate remained steady at 5%.
The one bright sport of the report showed that average hourly earnings rose by eight cents or 0.3%, bringing the year-on-year increase to 2.5% from 2.3% in March.
The weak jobs data added to signs that the economy is losing momentum after the Commerce Department reported last week that U.S. economy grew at the slowest pace in two years in the first quarter.
The report saw investors all but abandon expectations for a June rate hike, with most investors now seeing the next U.S. rate hike coming in September.
In the euro zone, European Central Bank board member Benoit Coeure said Wednesday the bank is not worried about the recent strength of the euro, but added that that a “sharp appreciation” of the single currency would be a concern.
The remarks came a day after the European Commission said economic growth will be slower than previously anticipated this year and warned that inflation would also remained subdued.
The EC cut its forecast for economic growth this year to 1.6%, down from its February forecast of 1.7%, citing the effects of the stronger euro.
In the week ahead, investors will be looking to Friday’s U.S. data on retail sales, producer prices and consumer sentiment for fresh indications on the health of the world’s largest economy.
Also Friday, the euro zone is to publish revised figures on first quarter growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 9
The Bank of Japan is to publish the minutes of its April policy meeting, giving investors insight into how officials view the economy and their policy options.
In the euro zone, Germany is to publish data factory orders.
The U.K. is to produce an industry report on house price inflation.
Tuesday, May 10
China is to release data on consumer and producer price inflation.
Federal Reserve Bank of New York President William Dudley is to speak at an event in Zurich.
The U.K. is to report on the trade balance.
Wednesday, May 11
The Reserve Bank of New Zealand is to publish its financial stability report and Governor Graeme Wheeler is to hold a press conference.
The U.K. is to release data on industrial production.
Thursday, May 12
The Bank of England is to announce its latest interest rate decision and publish its monetary policy meeting minutes, including the voting breakdown. In addition, the bank is to release its quarterly inflation report and Governor Mark Carney, along with other policymakers, is to hold a press conference.
The U.S. is to publish the weekly report on initial jobless claims.
Friday, May 13
New Zealand is to publish figures on retail sales.
Germany is to release preliminary data on inflation.
The euro zone is to release a revised estimate of first quarter economic growth.
The U.S. is to round up the week with data on retail sales, producer prices and consumer sentiment.