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Forex - Euro trims gains but remains supported vs. dollar

Published 05/06/2016, 10:04 AM
© Reuters.  Euro pulls away from session highs against dollar
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Investing.com - The euro trimmed gains against the U.S. dollar on Friday, but remained supported as disappointing U.S. employment data added to concerns over the strength of the job market, dampening demand for the greenback.

EUR/USD pulled back from 1.1480, the session high, to hit 1.1421 during U.S. morning trade, still up 0.13%.

The pair was likely to find support at 1.1332, the low of April 29 and resistance at 1.1529, Wednesday’s high.

The U.S. Labor Department said the economy added 160.000 jobs in April, disappointing expectations for an increase of 202.000. The number of jobs rose by 208.000 in March, whose figure was revised from a previously estimated 215.000 rise.

The report also showed that the U.S. unemployment rate held at 5.0% last month, in line with expectations.

Average hourly earnings in the U.S. rose by 0.3% in April, in line with expectations and after a revised 0.2% gain the previous month.

The data added to concerns over the U.S. job market after payroll processing firm ADP said on Wednesday that non-farm private employment rose by 156,000 last month, missing expectations for an increase of 196,000.

On Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 29 increased by 17,000 to 274,000, compared to expectations for a 3,000 rise.

The euro was also higher against the pound, with EUR/GBP adding 0.19% to 0.7889.

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