Investing.com - The euro fell against the dollar on Friday after the latest U.S. employment report came in broadly in line with expectations, indicating that the economy is continuing to grow.
The Labor Department reported that the U.S. economy added 223,000 jobs in April, just shy of economists forecast for 224,000. The unemployment rate ticked down from 5.5% to 5.4%, the lowest since May 2008.
But March’s payrolls report was revised to show that only 85,000 jobs were created, the fewest since June 2012.
The data did little to alter expectations that the Federal Reserve will keep rates on hold at current record lows until later in the year.
The Fed is closely monitoring the labor market as it considers when to start raising interest rates, which have been on hold close to zero since December 2008.
EUR/USD touched session lows of 1.1180 immediately following the report and ended at 1.1200, off 0.58% for the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, hit highs of 95.17 after the data, before pulling back to 94.9 in late trade. The index ended the week down 0.57%, its fourth consecutive weekly loss.
Elsewhere, the euro was sharply lower against the stronger pound after Prime Minister David Cameron’s Conservative Party won a surprise majority in British elections, easing concerns over the prospects of lengthy coalition negotiations.
EUR/GBP hit lows of 0.7226 before finishing at 0.7251, a loss of 1.85% for the day.
In the week ahead investors will be turning their attention to U.S. data on retail sales and consumer sentiment for fresh indications on the strength of the economic recovery. The euro zone is to release what will be closely watched preliminary estimates on first quarter growth on Wednesday.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Monday, as there are no major economic events scheduled.
Tuesday, May 12
In the euro zone, the Economic and Financial Affairs Council is to hold talks in Brussels.
Wednesday, May 13
The euro zone is to publish what will be closely watched data on first quarter economic growth. Later in the day, the European Central Bank is to publish the minutes of its latest meeting.
The U.S. is to publish data on retail sales.
Thursday, May 14
New Zealand is to release private sector data on manufacturing activity and official data on retail sales.
The U.S. is to publish reports on producer prices and initial jobless claims.
Friday, May 15
The U.S. is to round up the week with reports on industrial production, manufacturing activity in the New York region and consumer sentiment.