Investing.com - The euro shot up against the dollar early Friday after the U.S. Labor Department revealed the economy added a net 96,000 nonfarm payrolls in August, well below market calls for 125,000 jobs.
The news sparked a dollar selloff as investors anticipated the Federal Reserve will stimulate the economy with easing measures that weaken the greenback to spur recovery.
In U.S. trading on Friday, EUR/USD was trading up 1.12% at 1.2773, up from a low of 1.2627 and off from a high of 1.2779.
The pair was likely to find support at 1.2627, the earlier low, and resistance at 1.2779, the earlier high.
Weak jobs numbers fueled already growing sentiment that the Federal Reserve will roll out a third round of quantitative easing at its Sept. 12-13 monetary policy meeting.
Under quantitative easing, the Fed buys assets such as Treasury holdings or mortgage-backed securities held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to encourage investing and hiring, weakening the dollar in the process.
The Bureau of Labor Statistics added that July's figures were revised down to 141,000 from 163,000, while June's figures were revised down to 45,000 from 64,000.
The unemployment rate stands at 8.1%.
Meanwhile in Europe, the single currency saw support on ECB President Mario Draghi's recent announcement that monetary authorities will buy sovereign bonds with maturities of up to three years via an Outright Monetary Transaction scheme, which won't affect the size of the ECB's balance sheet.
The plan aims to lower borrowing costs in countries such as Italy and Spain.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP up 0.66% at 0.7981, and EUR/JPY trading up 0.37% at 99.98.
The news sparked a dollar selloff as investors anticipated the Federal Reserve will stimulate the economy with easing measures that weaken the greenback to spur recovery.
In U.S. trading on Friday, EUR/USD was trading up 1.12% at 1.2773, up from a low of 1.2627 and off from a high of 1.2779.
The pair was likely to find support at 1.2627, the earlier low, and resistance at 1.2779, the earlier high.
Weak jobs numbers fueled already growing sentiment that the Federal Reserve will roll out a third round of quantitative easing at its Sept. 12-13 monetary policy meeting.
Under quantitative easing, the Fed buys assets such as Treasury holdings or mortgage-backed securities held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to encourage investing and hiring, weakening the dollar in the process.
The Bureau of Labor Statistics added that July's figures were revised down to 141,000 from 163,000, while June's figures were revised down to 45,000 from 64,000.
The unemployment rate stands at 8.1%.
Meanwhile in Europe, the single currency saw support on ECB President Mario Draghi's recent announcement that monetary authorities will buy sovereign bonds with maturities of up to three years via an Outright Monetary Transaction scheme, which won't affect the size of the ECB's balance sheet.
The plan aims to lower borrowing costs in countries such as Italy and Spain.
The euro, meanwhile, was up against the pound and up against the yen, with EUR/GBP up 0.66% at 0.7981, and EUR/JPY trading up 0.37% at 99.98.