Investing.com - The euro edged slightly lower against the dollar on Monday after investors shrugged off Friday's soft U.S. jobs report and focused on the fallout from a recent European Central Bank move to loosen policy.
In U.S. trading, EUR/USD was down 0.04% at 1.2947, up from a session low of 1.2931 and off a high of 1.2959.
The pair was likely to find support at 1.2918, Thursday's low, and resistance at 1.3160, Wednesday's high.
The euro gave back Friday's gains and softened in wake of a recent European Central Bank decision to trim its benchmark interest rate to a record-low 0.05% from 0.15%.
The central bank also lowered its deposit facility rate to -0.20% from -0.10% previously and its marginal lending rate to 0.30% from 0.40%.
The European monetary authority will also begin an asset-backed securities purchasing program to shore up the recovery.
The ECB cut its forecast for growth this year to 0.9% down from 1.0% previously and cut the forecast for 2015 to 1.6% from 1.7%. The bank also lowered its inflation forecast for this year to 0.6% from 0.7% in June.
Sentiments that European monetary policy will loosen while the U.S. and the U.K. move in different directions softened demand for the single currency.
The euro firmed against the dollar on Friday after data revealed the U.S. economy added 142,000 jobs in August, far less than the expected increase of 225,000.
The dollar, however, recovered, as the August jobs report tends to be subject to hefty revisions.
Elsewhere, the euro was up against the pound, with EUR/GBP up 1.03% at 0.8016, and up against the yen, with EUR/JPY up 0.33% at 136.54.
The pound came under heavy selling pressure after a YouGov/Sunday Times poll found over the weekend that 51% in Scotland favored voting for independence from the U.K. in a referendum set to take place on Sept. 18.