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Forex - EUR/USD jumps over 1% to 2-week highs

Published 10/02/2015, 10:07 AM
© Reuters.  Euro erases losses vs. dollar and hits multi-week high
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Investing.com - The euro erased losses against and rose to a two-week peak against the U.S. dollar on Friday, after downbeat U.S. jobs data dampened optimism over the country's economy, sending the greenback broadly lower.

EUR/USD hit 1.1315 during U.S. morning trade, the pair's highest since September 21; the pair subsequently consolidated at 1.1315, jumping 1.08%.

The pair was likely to find support at 1.1136, the session low and resistance at 1.1332, the high of September 21.

The U.S. Labor Department reported that the economy added 142.000 jobs in September, confounding expectations for an increase of 203.000. The U.S. created 136.000 jobs in August, whose figure was revised from a previously estimated gain of 173.000.

The U.S. unemployment rate remained unchanged at 5.1% last month, in line with expectations.

The report also showed that average hourly earnings were flat in September, compared to expectations for a 0.2% rise and after an upwardly revised 0.4% increase the previous month.

Another report showed that U.S. factory orders declined by 1.7% in August, compared to expectations for a 1.2% drop, after a downwardly revised 0.2% gain the previous month.

The weak data fuelled uncertainty over whether or not the Federal Reserve will raise interest rates before the end of the year.

The euro was also higher against the pound, with EUR/GBP advancing 0.43% to 0.7429.

In the U.K., research group Markit reported on Friday that its construction purchasing managers' index rose to a six-month high of 59.9 in September from a reading of 57.3 in August. Analysts had expected the index to tick up to 57.5 last month.

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