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Forex - EUR/USD drops after strong U.S. nonfarm payrolls data

Published 05/02/2014, 08:49 AM
Euro declines against the dollar after U.S. data
EUR/USD
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EUR/GBP
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Investing.com - The euro dropped against the U.S. dollar on Friday, as the release of strong U.S. employment data fuelled optimism over the strength of the country's economic recovery, sending the greenback broadly higher.

EUR/USD hit 1.3818 during European afternoon trade, the pair's lowest since Wednesday; the pair subsequently consolidated at 1.3819, shedding 0.35%.

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

The Labor Department said 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 the expected 210,000 rise. 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%.

The euro was little changed against the pound, with EUR/GBP dipping 0.05% to 0.8206.

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.

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