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Forex - EUR/USD pulls away from 3-1/2 month highs after U.S. data

Published 02/05/2016, 09:43 AM
© Reuters.  Euro drops against broadly stronger greenback
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Investing.com - The euro dropped against the U.S. dollar on Friday, pulling away from a three-and-a-half month high as mostly positive U.S. jobs data lent support to the greenback, while a disappointing economic report weighed on the single currency.

EUR/USD hit 1.1116 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.1140, declining 0.60%.

The pair was likely to find support at 1.1067, Thursday’s low and resistance at 1.1352, the high of October 22.

The Labor Department said the U.S. economy added 151,000 jobs in January, compared to expectations for an increase of 190,000. The economy created 262,000 jobs in December, whose figure was revised from a previously estimated 292,000 gain.

The U.S. unemployment rate ticked down to 4.9% last month from 5.0% in December. Analysts had expected the unemployment rate to remain unchanged in January.

The report also showed that average hourly earnings rose 0.5% in January, compared to expectations for a 0.3% gain, after a flat reading in December.

Separately, data showed that the U.S. trade deficit widened to $43.36 billion in December from $42.23 billion in November, whose figure was revised from a previously estimated deficit of $42.40 billion.

Analysts had expected the trade deficit to hit $43.00 billion in December.

In the euro zone, data earlier showed that German factory orders fell by 0.7% in December, compared to expectations for a downtick of 0.5%, after a 1.5% increase the previous month.

The euro was steady against the pound, with EUR/GBP at 0.7685.

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