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Forex - EUR/USD erases losses despite U.S. data

Published 03/04/2016, 09:58 AM
© Reuters.  Euro eases off session lows vs. weaker greenback
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Investing.com - The euro erased losses against the U.S. dollar on Friday, as upbeat U.S. employment data only briefly boosted invertor confidence over the U.S. economic recovery.

EUR/USD eased off 1.0905, the session low, to hit 1.1012 during U.S. morning trade, climbing 0.51%.

The pair was likely to find support at 1.0851, Thursday’s low and resistance at 1.1071, the high of February 26.

The Labor Department said that the U.S. economy added 242.000 jobs in February, exceeding expectations for a 190.000 rise. The U.S. added 172.000 jobs in January, whose figure was revised from a previously estimated 151.000 gain.

The U.S. unemployment rate remained unchanged at 4.9% last month, in line with expectations.

The report also showed that U.S. average hourly earnings fell 0.1% in February, disappointing expectations for a 0.2% rise, after an increase of 0.5% the previous month.

Data also showed that the U.S. trade deficit widened to $45.68 billion in January from $44.70 billion in December, whose figure was revised from a previously estimated deficit of $43.40 billion.

Analysts had expected the trade deficit to hit $44.00 billion in January.

The euro was also higher against the pound, with EUR/GBP rising 0.22% to 0.7746.

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