Forex - EUR/USD dips on U.S. jobs report, Spanish factory data

Published 11/02/2012, 12:46 PM
Updated 11/02/2012, 12:48 PM
EUR/USD
-
EUR/GBP
-
EUR/JPY
-
Investing.com - The euro fell against the dollar on Friday even though the U.S. government revealed the economy picked up more payrolls than expected in October, which would normally spark a risk-on trading session that would weaken the dollar.

A Spanish purchasing managers' index disappointed, which fueled demand for the greenback.

In U.S. trading on Friday, EUR/USD was trading down 0.77% at 1.2843, up from a session low of 1.2837, and off from a high of 1.2947.

The pair is likely to find support at 1.2837, the earlier low, and resistance at 1.2947, the earlier high.

The U.S. Bureau of Labor Statistics revealed earlier that the U.S. economy added 171,000 jobs in October, beating out analysts' calls for a gain of around 125,000.

The headline unemployment rate rose to 7.9% from 7.8% in September.

While the number fueled some demend for risk, investors snapped up greenback positions after stock markets shrugged of the jobs report.

The economy didn't add enough jobs to reflect a more robust U.S. recovery.

Some analysts have said the economy should create at least 250,000  a month on an ongoing basis before recovery really gains steam.

Disappointing Spanish production figures also stoked demand for the dollar.

The Markit research group reported that Spain's manufacturing purchasing managers' index fell more than expected in October, dropping to 43.5 from a reading 0f 44.6 the previous month.

Analysts were expecting a reading of 44.0.

Meanwhile, Italy's purchasing managers' index fell to 45.5 in October from 45.7 in September, disappointing expectations for a reading of 45.9.

Dollar demand also remained firm amid uncertainty surrounding U.S. presidential elections on Tuesday, with neither President Barack Obama or his Republican challenger, Mitt Romney, emerging as a front runner.

The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.16% at 0.8012, and EUR/JPY trading up 0.28% at 103.41.







Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.