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EUR/USD steady on upbeat U.S. jobs report, Urkaine concerns weigh

Published 05/02/2014, 12:58 PM
Updated 05/02/2014, 01:02 PM
Urkaine concerns dampen dollar's rally
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Investing.com - A robust U.S. April jobs report edged the greenback over the euro on Friday, though solid euro zone unemployment and manufacturing data gave the euro some support against the greenback.

In U.S. trading, EUR/USD was down 0.04% at 1.3863, up from a session low of 1.3812 and off a high of 1.3872.

The pair was likely to find support at 1.3778, Wednesday's low, and resistance at 1.3889, Thursday's high.

U.S. businesses brushed off the fallout from a rough winter and went out hiring in April.

The Labor Department reported earlier that the U.S. economy added 288,000 jobs in April, beating expectations for a 210,000 increase. March's figure was revised up to a 203,000 rise from a previously estimated 192,000 gain.

The private sector added 273,000 last month, more than an expected 210,000 increase. In March, the number of private sector jobs was revised up to a 202,000 increase a previously estimated 192,000 rise.

The report also showed that the U.S. unemployment rate fell to 6.3% in April, from 6.7% the previous month, compared to expectations for a fall 6.6%.

Separately, data showed that U.S. factory orders rose 1.1% in March, less than the expected 1.4% gain, after a 1.5% rise in February, whose figure was revised down from a previously estimated 1.6% increase.

Chipping away at the dollar's earlier gains were concerns the Ukraine crisis may escalate.

The U.N. Security Council was set to meet to discuss the crisis on Friday, while separately, U.S. President Barack Obama threatened to slap fresh sanctions on Russia if Moscow disrupts elections in Ukraine scheduled for May 25.

Positive data out of Europe gave the euro some support and steadied the pair.

In the euro zone, data showed that the unemployment rate remained unchanged at 11.8% in March, confounding expectations for a rise to 11.9%. March's figure was revised down from a previously estimated rate of 11.9%.

Separately, Markit said Germany's manufacturing purchasing managers' index slipped to 54.1 last month, from a reading of 54.2 in March. Analysts had expected the index to remain unchanged in April.

In Italy however, the manufacturing PMI rose to a 35-month high of 54.0 last month, from a reading of 52.4 in March, while Spain's manufacturing PMI ticked down to 52.7 in April, from a reading of 52.8 the previous month.

The final euro zone manufacturing PMI ticked up to 53.4 in April, from 53.3 in March. Analysts had expected the index to remain unchanged last month.

The euro was up against the pound, with EUR/GBP up 0.10% to 0.8218, and down against the yen, with EUR/JPY down 0.02% at 141.88.

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