Investing.com - The euro gained while the dollar slumped on Friday as investors digested a poor U.S. December jobs report, which sparked concerns for the Federal Reserve to taper its bond-buying program slower than once anticipated.
In U.S. trading, EUR/USD was trading at 1.3667, up 0.43%, up from a session low of 1.3574 and off a high of 1.3684.
The pair was likely to find support at 1.3549, Thursday's low, and resistance at 1.3775, the high from Jan. 2.
The Bureau of Labor Statistics reported earlier that the U.S. economy added 74,000 jobs in December, well below expectations for a 196,000 increase and below an upwardly revised 241,000 rise the previous month.
The U.S. private sector added 87,000 jobs last month, disappointing expectations for 195,000 rise, after an upwardly increase of 226,000 in November.
The report also showed that the U.S. unemployment rate fell to 6.7% in December due to a weak participation rate, down from 7.0% in November. Analysts had expected the rate to remain unchanged last month.
The numbers weakened the dollar by fueling expectations for the Federal Reserve to trim its USD75 billion monthly bond-buying program at a slower pace than once expected.
Fed asset purchases tend to weaken the dollar by suppressing long-term interest rates.
The euro rose on the disappointing data though it still faced headwinds after ECB President Mario Draghi on Thursday reinforced the bank’s forward guidance on rates and said the bank was still ready to ready to take "further decisive action" if needed.
Draghi reiterated that monetary policy will remain accommodative for as long as is needed in order to assist the economic recovery in the euro area. The ECB expects interest rates to remain at present or lower levels for an extended period of time, he said.
Elsewhere on Friday, official data showed that industrial production in France climbed 1.3% in November, exceeding expectations for a 0.4% rise, after a downwardly revised 0.5% decline the previous month.
The euro was up against the pound, with EUR/GBP gaining 0.47% to 0.8295, and down against the yen, with EUR/JPY trading down 0.34% 142.19.
In U.S. trading, EUR/USD was trading at 1.3667, up 0.43%, up from a session low of 1.3574 and off a high of 1.3684.
The pair was likely to find support at 1.3549, Thursday's low, and resistance at 1.3775, the high from Jan. 2.
The Bureau of Labor Statistics reported earlier that the U.S. economy added 74,000 jobs in December, well below expectations for a 196,000 increase and below an upwardly revised 241,000 rise the previous month.
The U.S. private sector added 87,000 jobs last month, disappointing expectations for 195,000 rise, after an upwardly increase of 226,000 in November.
The report also showed that the U.S. unemployment rate fell to 6.7% in December due to a weak participation rate, down from 7.0% in November. Analysts had expected the rate to remain unchanged last month.
The numbers weakened the dollar by fueling expectations for the Federal Reserve to trim its USD75 billion monthly bond-buying program at a slower pace than once expected.
Fed asset purchases tend to weaken the dollar by suppressing long-term interest rates.
The euro rose on the disappointing data though it still faced headwinds after ECB President Mario Draghi on Thursday reinforced the bank’s forward guidance on rates and said the bank was still ready to ready to take "further decisive action" if needed.
Draghi reiterated that monetary policy will remain accommodative for as long as is needed in order to assist the economic recovery in the euro area. The ECB expects interest rates to remain at present or lower levels for an extended period of time, he said.
Elsewhere on Friday, official data showed that industrial production in France climbed 1.3% in November, exceeding expectations for a 0.4% rise, after a downwardly revised 0.5% decline the previous month.
The euro was up against the pound, with EUR/GBP gaining 0.47% to 0.8295, and down against the yen, with EUR/JPY trading down 0.34% 142.19.