Investing.com - The euro dropped to two-year lows against an advancing dollar on Friday after news broke the U.S. economy picked up way more jobs in November than markets were expecting.
In U.S. trading, EUR/USD was down 0.65% at 1.2297, up from a session low of 1.2272 and off a high of 1.2393.
The pair was likely to find support at 1.2254, the low from Aug. 16. 2012, and resistance at 1.2458, Thursday's high.
The Labor Department reported earlier that the U.S. economy added 321,000 jobs in November, well past expectations for a 225,000 reading. October's figure was revised up to 243,000 from a previously estimated 214,000, pointing to underlying strength in the labor market.
The U.S. unemployment rate remained unchanged at 5.8% last month, in line with expectations, and the numbers fueled expectations that the Federal Reserve will raise interest rates in 2015, possibly earlier than once anticipated.
A separate report showed that the U.S. trade deficit hit $43.40 billion in October, down from $43.60 billion in September, whose figure was revised from a previously estimated deficit of $43.00 billion. Analysts had expected the trade deficit to narrow to $41.20 billion in October.
Data also showed that U.S. factory orders fell 0.7% in October compared to expectations for a 0.2% slip. Factory orders in September were revised to a 0.5% decline from a previously estimated 0.6% fall.
In the euro zone, official data earlier showed that German factory orders rose 2.5% in October, exceeding expectations for a 0.6% gain. Factory orders in September were revised to an increase of 1.1% from a previously estimated 0.8% rise.
The single currency had strengthened broadly on Thursday after European Central Bank President Mario Draghi indicated that the bank would not embark on quantitative easing for now, saying the bank would reassess its stimulus program in the first quarter of 2015.
Elsewhere, the euro was down against the pound, with EUR/GBP down 0.13% at 0.7887, and up against the yen, with EUR/JPY up 0.75% at 149.40.