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Forex - EUR/USD pushes lower after U.S. nonfarm payrolls

Published 06/06/2014, 09:53 AM
Euro declines vs. dollar after positive U.S. data
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Investing.com - The euro pushed lower against the U.S. dollar on Friday, as the release of positive U.S. employment data boosted demand for the greenback, while comments by the European Central Bank on Thursday continued to weigh on the single currency.

EUR/USD hit 1.3621 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.3629, shedding 0.24%.

The pair was likely to find support at 1.3503, Thursday's low and a four-month low and resistance at 1.3687, the high of May 22.

The U.S. Labor Department said the economy added 217,000 in May, missing 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, after a downwardly revised 270,000 increase in April.

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%.

Meanwhile, the euro remained under pressure after the ECB on Thursday lowered its benchmark interest rate to a record-low 0.15% from 0.25% and said it will be conducting a series of Targeted Longer Term Refinancing Operations (TLTROs) to support bank lending in the euro zone.

Earlier Friday, official data showed 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.

The euro was fractionally lower against the euro, with EUR/GBP edging down 0.09% to 0.8114.

In the U.K., official data showed that the trade deficit widened to £8.92 billion in April, from £8.29 billion in March, whose figure was revised from a previously estimated deficit of £8.48 billion. Analysts had expected the trade deficit to widen to £8.65 billion in April.

Separately, the Bank of England said consumer inflation expectations for the next year fell to 2.6% in the first quarter, from 2.8% in the three months to December.

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