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Forex - EUR/USD plunges on political uncertainty, NFP ignored

Published 05/04/2012, 12:38 PM
Updated 05/04/2012, 12:41 PM
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Investing.com - The euro traded lower against the greenback Friday, despite a sharply lower than expected U.S. nonfarm payroll number as elections in France and Greece weigh on the single currency.

EUR/USD traded at 1.3087, down 0.50% after hitting a high of 1.3162 earlier in the session.

The greenback ignored U.S. nonfarm payrolls advancing less-than-expected last month, official data showed on Friday.

The U.S. Department of Labor reported non-farm payrolls climbed to a seasonally adjusted 115K, from 154K in the preceding month whose figure was revised up from 120K.

Economists had expected U.S. non-farm payrolls to rise 170K last month.
Adding to the uncertainty, France and Greece will hold elections over the weekend.

Traders focused on the uncertain weekend elections,  weighing on the single currency.

French voters will decide on the final round of the countries presidential race and Greece will be voting on a new parliament.

Francois Hollande, the Socialist challenger for the French highest office, is the leading incumbent. He is calling for a re-negotiation of the budget pact with European leaders, saying it needs to place more of an emphasis on growth. He has rejected Sarkozy’s plan to increase sales taxes to fund lower payroll charges.

Meanwhile in Greece, neither of the two major political parties, New Democracy and Socialist Pasok is likely to win the majority.

The euro was trading close to a fresh 22-month low against the pound with EUR/GBP giving back 0.34%, to hit 0.8104.



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