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Forex - EUR/USD trims losses but remains under pressure

Published 01/08/2016, 09:56 AM
© Reuters.  Euro eases off session lows vs. dollar, but remains on the downside
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Investing.com - The euro trimmed losses against the U.S. dollar on Friday, but remained under pressure as upbeat U.S. jobs data lent support to the greenback and as Chinese markets stabilized.

EUR/USD eased off 1.0803, the session low, to hit 1.0872 during U.S. morning trade, still down 0.55%.

The pair was likely to find support at 1.0769, Thursday’s low and resistance at 1.0992, the high of December 29.

The dollar strengthened broadly after the U.S. Labor Department said the economy added 292.000 jobs in December, beating expectations for a rise of 200.000. The U.S. economy added 252.000 jobs in November, whose figure was revised from a previously estimated 211.000 gain.

The U.S. unemployment rate remained unchanged at 5.0% last month, in line with expectations.

The report also showed that average hourly earnings were flat in December, compared to expectations for a 0.2% rise, after an uptick of 0.2% the previous month.

The greenback also found support after China’s Securities Regulatory Commission suspended the market circuit breaker introduced only on Monday and after the People's Bank of China set a higher yuan guidance rate for the first time in nine days.

The euro was lower against the pound, with EUR/GBP shedding 0.24% to 0.7462.

Earlier Friday, the U.K. Office for National Statistics said the trade deficit narrowed to £10.64 billion in November from £11.20 billion in October, whose figure was revised from a previously estimated deficit of £11.83 billion.

Analysts had expected the trade deficit to narrow to £10.50 billion in November.

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