Investing.com - The euro extended gains against the U.S. dollar on Friday, rising to a more than two-month high after the release of better-than-expected German industrial production data, while markets eyed a highly-anticipated U.S. jobs report later in the day.
EUR/USD hit 1.2695 during European early afternoon trade, the pair's highest since June 21; the pair subsequently consolidated at 1.2692, climbing 0.47%.
The pair was likely to find support at 1.2627, the day's low and resistance at 1.2815, the high of May 22.
The euro strengthened after official data showed that industrial production in Germany climbed by 1.3% in July, beating expectations for a 0.2% rise and following a revised 0.4% decline the previous month.
The data came after European Central Bank Mario Draghi unveiled on Thursday a new bond-purchasing program, dubbed Outright Monetary Transactions, which he said will provide "a fully effective backstop" against market volatility.
Speaking at the bank’s post-policy meeting press conference, Draghi said "strict and effective conditionality” was an essential element of the plan.
Under the terms of the plan, the ECB would buy unlimited amounts of government bonds of up to three years in maturity, as long as the country in question is signed up to the OMT program and agrees to economic reforms.
Meanwhile, investors were awaiting the release of a key U.S. employment report later Friday, after upbeat data painted a rather bright picture of the sector on Thursday, dampening expectations for near-term stimulus measures by the Federal Reserve.
The euro was also higher against the pound with EUR/GBP rising 0.38%, to hit 0.7959.
Later in the day, the U.S. was to release a report on non-farm payrolls and the unemployment rate.
EUR/USD hit 1.2695 during European early afternoon trade, the pair's highest since June 21; the pair subsequently consolidated at 1.2692, climbing 0.47%.
The pair was likely to find support at 1.2627, the day's low and resistance at 1.2815, the high of May 22.
The euro strengthened after official data showed that industrial production in Germany climbed by 1.3% in July, beating expectations for a 0.2% rise and following a revised 0.4% decline the previous month.
The data came after European Central Bank Mario Draghi unveiled on Thursday a new bond-purchasing program, dubbed Outright Monetary Transactions, which he said will provide "a fully effective backstop" against market volatility.
Speaking at the bank’s post-policy meeting press conference, Draghi said "strict and effective conditionality” was an essential element of the plan.
Under the terms of the plan, the ECB would buy unlimited amounts of government bonds of up to three years in maturity, as long as the country in question is signed up to the OMT program and agrees to economic reforms.
Meanwhile, investors were awaiting the release of a key U.S. employment report later Friday, after upbeat data painted a rather bright picture of the sector on Thursday, dampening expectations for near-term stimulus measures by the Federal Reserve.
The euro was also higher against the pound with EUR/GBP rising 0.38%, to hit 0.7959.
Later in the day, the U.S. was to release a report on non-farm payrolls and the unemployment rate.