Investing.com - The dollar slumped to near two-year lows against the euro and most other major currencies on Tuesday after U.S. unemployment data revealed the economy added far few jobs in September than expected.
In U.S. trading on Tuesday, EUR/USD was up 0.70% at 1.3776, up from a session low of 1.3652 and off from a high of 1.3785.
The pair was likely to find support at 1.3652, the earlier low, and resistance at 1.3794, the high from Nov. 11, 2011.
The dollar sank after the Department of Labor said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000. The previous month’s figure was revised up to a gain of 193,000 from a previously reported increase of 169,000.
July's figure was revised down to 89,000 from 104,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August due in part to more people dropping out of the labor force.
The jobs report published 18 days behind schedule due to disruption caused by the recent U.S. government shutdown.
The data kept expectations going strong that the Federal Reserve will continue stimulating the economy to boost job creation by buying assets each month.
The Fed is currently purchasing USD85 billion in Treasury holdings and mortgage debt a month to boost the economy, a monetary policy tool known as quantitative easing that drives down interest rates to spur recovery and job creation, weakening the dollar in the process.
Prior to the release of the September jobs report, concerns that the government shutdown and accompanying default fears along with the naming of dovish Janet Yellen as the new Chair of the Federal Reserve had may investors betting that any decision to taper asset purchases would come later rather than sooner.
Elsewhere, the euro was up against the pound and up against the yen, with EUR/GBP trading up 0.24% at 0.8492 and EUR/JPY trading up 0.62% at 135.17.
In U.S. trading on Tuesday, EUR/USD was up 0.70% at 1.3776, up from a session low of 1.3652 and off from a high of 1.3785.
The pair was likely to find support at 1.3652, the earlier low, and resistance at 1.3794, the high from Nov. 11, 2011.
The dollar sank after the Department of Labor said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000. The previous month’s figure was revised up to a gain of 193,000 from a previously reported increase of 169,000.
July's figure was revised down to 89,000 from 104,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August due in part to more people dropping out of the labor force.
The jobs report published 18 days behind schedule due to disruption caused by the recent U.S. government shutdown.
The data kept expectations going strong that the Federal Reserve will continue stimulating the economy to boost job creation by buying assets each month.
The Fed is currently purchasing USD85 billion in Treasury holdings and mortgage debt a month to boost the economy, a monetary policy tool known as quantitative easing that drives down interest rates to spur recovery and job creation, weakening the dollar in the process.
Prior to the release of the September jobs report, concerns that the government shutdown and accompanying default fears along with the naming of dovish Janet Yellen as the new Chair of the Federal Reserve had may investors betting that any decision to taper asset purchases would come later rather than sooner.
Elsewhere, the euro was up against the pound and up against the yen, with EUR/GBP trading up 0.24% at 0.8492 and EUR/JPY trading up 0.62% at 135.17.