Investing.com - The euro rose to almost six- week highs against the dollar on Monday and hit a fresh five year peak against the yen as Friday’s stronger-than-forecast U.S. jobs data bolstered investor demand for riskier assets.
EUR/USD hit highs of 1.3720, the strongest level since October 31 and was last up 0.01% at 1.3705. The pair is likely to find support at 1.3660 and resistance at 1.3750. Friday’s U.S. nonfarm payrolls report showed that the economy added 203,000 jobs in November, well above expectations for jobs growth of 180,000. The unemployment rate fell to a five year low of 7.0%.
The data bolstered optimism over the outlook for the economic recovery and reinforced expectations that the Federal Reserve will start reducing its USD85 billion-a-month stimulus program at one of its next few meetings.
The increase in risk appetite fuelled gains in equities markets and dampened safe haven demand for the dollar and the yen.
Sentiment on the yen was also hit after data released on Monday showed that Japan’s economy grew at an annualized rate of 1.1% in the third quarter, slower than the preliminary estimate for 1.9% growth and below forecasts for 1.6%.
The euro was higher against the yen, with EUR/JPY rising to 141.53, the highest level since October 2008, and was last up 0.13% to 141.12.
In the euro zone, data on Monday showed that Germany's trade surplus narrowed in October as imports grew faster than exports, shrinking to EUR16.8 billion from EUR18.7 billion in September.
Germany exported goods worth EUR92.9 billion, up only fractionally from EUR92.7 billion in September, while imports grew by 2.8% to EUR76.1 billion from EUR74.0 billion.
Elsewhere, the dollar was higher against the yen, with USD/JPY up 0.18% to 102.99, near the six-month high of 103.37 struck last Tuesday.
EUR/USD hit highs of 1.3720, the strongest level since October 31 and was last up 0.01% at 1.3705. The pair is likely to find support at 1.3660 and resistance at 1.3750. Friday’s U.S. nonfarm payrolls report showed that the economy added 203,000 jobs in November, well above expectations for jobs growth of 180,000. The unemployment rate fell to a five year low of 7.0%.
The data bolstered optimism over the outlook for the economic recovery and reinforced expectations that the Federal Reserve will start reducing its USD85 billion-a-month stimulus program at one of its next few meetings.
The increase in risk appetite fuelled gains in equities markets and dampened safe haven demand for the dollar and the yen.
Sentiment on the yen was also hit after data released on Monday showed that Japan’s economy grew at an annualized rate of 1.1% in the third quarter, slower than the preliminary estimate for 1.9% growth and below forecasts for 1.6%.
The euro was higher against the yen, with EUR/JPY rising to 141.53, the highest level since October 2008, and was last up 0.13% to 141.12.
In the euro zone, data on Monday showed that Germany's trade surplus narrowed in October as imports grew faster than exports, shrinking to EUR16.8 billion from EUR18.7 billion in September.
Germany exported goods worth EUR92.9 billion, up only fractionally from EUR92.7 billion in September, while imports grew by 2.8% to EUR76.1 billion from EUR74.0 billion.
Elsewhere, the dollar was higher against the yen, with USD/JPY up 0.18% to 102.99, near the six-month high of 103.37 struck last Tuesday.