Investing.com - The dollar weakened against the euro on Friday after a disappointing August jobs report renewed concerns surrounding slackness in the labor market that might prompt the Federal Reserve to take its time raising interest rates next year.
In U.S. trading, EUR/USD was up 0.10% at 1.2958, up from a session low of 1.2922 and off a high of 1.2988.
The pair was likely to find support at 1.2918, Thursday's, and resistance at 1.3160, Wednesday's high.
The Department of Labor reported earlier that the U.S. economy added 142,000 jobs in August, far less than the expected increase of 225,000. July's figure was revised to a 212,000 increase from a previously estimated rise of 209,000.
The report also showed that the U.S. unemployment rate ticked down to 6.1% last month, from 6.2%, in line with expectations.
The data came a day after payroll processor ADP reported that its nonfarm payrolls report showed that the private sector added 204,000 jobs in August, missing expectations for jobs growth of 220,000 though still above the 200,000 mark.
Still, the dollar didn't plummet on the data, as the August jobs report tends to be subject to hefty revisions.
Federal Reserve Chair Janet Yellen has said that slackness persists in the labor market despite an improving economy.
Meanwhile in Europe, official data revealed that German industrial production rose 1.9% in July, beating expectations for an uptick of 0.3%, after a revised 0.4% increase in June.
Still, the euro continued to come under pressure in wake of a European Central Bank decision to trim its benchmark interest rate to a record-low 0.05% from 0.15% on Thursday.
The central bank also lowered its deposit facility rate to -0.20% from -0.10% previously and its marginal lending rate to 0.30% from 0.40%.
The European monetary authority will also begin an asset-backed securities purchasing program to shore up the recovery and steer the continent away from deflationary decline.
The ECB cut its forecast for growth this year to 0.9% down from 1.0% previously and cut the forecast for 2015 to 1.6% from 1.7%. The bank also lowered its inflation forecast for this year to 0.6% from 0.7% in June.
Elsewhere, the euro was up against the pound, with EUR/GBP up 0.21% at 0.7944, and down against the yen, with EUR/JPY down 0.21% at 135.96.