Forex - EUR/USD hits session highs after upbeat U.S. jobs data

Published 11/01/2012, 08:47 AM
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Investing.com - The euro hit session highs against the U.S. dollar on Thursday, as market sentiment was boosted by stronger-than-expected ADP nonfarm payrolls and a decline in initial jobless claims.

EUR/USD hit 1.2977 during European afternoon trade, the session high; the pair subsequently consolidated at 1.2975, easing up 0.12%.

The pair was likely to find support at 1.2885, Tuesday’s low and resistance at 1.3019, Wednesday’s high.

The Department of Labor said the number of individuals filing for initial jobless benefits to 363,000 last week from 372,000 the previous week, compared to expectations for a decline to 370,000.

The previous week’s figure was revised up to 372,000 from a previously reported 369,000.

The data came on the heels of a report showing that U.S. private sector employment increased more-than-expected in October.

Payroll processing firm ADP said the U.S. private sector added 158,000 jobs this month, surpassing expectations for an increase of 135,000.

The previous month’s figure was revised down to a gain of 88,200 from a previously reported increase of 162,000.

The euro’s gains were limited amid ongoing uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.

Investors also remained cautious ahead of U.S. data on nonfarm payrolls on Friday and the U.S. presidential elections next week.

The euro was fractionally lower against the pound, with EUR/GBP dipping 0.07% to 0.8028, but gained ground against the yen, with EUR/JPY up 0.49% to 103.87.

Later in the day, the Institute of Supply Management was to publish data on U.S. manufacturing activity.


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