Investing.com - The euro edged higher against the dollar on Friday after the latest U.S. jobs report failed to provide much clarity on whether the U.S. central bank will decide to raise short term interest rates later this month,
The Labor Department reported that the U.S. economy added 173,000 jobs last month, slowing after an upwardly revised gain of 245,000 in July. It was the smallest increase in employment in five months and was below expectations for 220,000.
But the unemployment rate ticked down to 5.1%, its lowest level since April 2008 from 5.3% in July, while average hourly wages rose by a stronger-than-expected 2.2%.
The dollar has come under pressure in recent weeks as slowing growth in China prompted investors to push back expectations for the timing of an initial rate hike by the Fed.
The euro pushed higher following the report, with EUR/USD up 0.25% to 1.1150 late Friday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 96.26, almost unchanged for the day after fluctuating between small gains and losses.
The single currency fell to two-week lows against the dollar on Thursday after the European Central Bank indicated that it could scale up its quantitative easing program and downgraded its forecasts for growth and inflation.
ECB President Mario Draghi said the bank’s asset purchase program provides sufficient flexibility to adjust the size, composition and duration of the program.
The ECB launched its €60 billion per month quantitative easing program in March after the euro area briefly slid into deflation and it is due to run until September 2016.
In the week ahead, investors will be looking ahead to Friday’s U.S. reports on producer prices and consumer sentiment for further indications on the strength of the economy.
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 Tuesday and Wednesday as there are no relevant events on these days.
Monday, September 7
Markets in the U.S. are to remain closed for the Labor Day holiday.
Thursday, September 10
The U.S. is to release data on initial jobless claims.
Friday, September 11
European Union finance ministers are to hold talks in Brussels.
The U.S. is to round up the week with data on producer prices and consumer sentiment.