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Forex - EUR/USD tumbles to 2-week low ahead of U.S. payrolls

Published 01/06/2011, 10:27 AM
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Investing.com – The euro extended earlier losses against the U.S. dollar on Thursday as market focus turned to Friday’s U.S. non-farm payrolls data as a way to test expectations that the U.S. recovery is gathering momentum.

EUR/USD hit 1.306 during European afternoon trade, the pair’s lowest since December 23; the pair subsequently consolidated at 1.3069, tumbling 0.62%.

The pair was likely to find support at 1.297, the low of December 1 and an 11-week low and resistance at 1.3238, the high of December 29.

Earlier in the day, U.S. government data showed that the number of individuals filing for initial jobless benefits last week rose more-than-expected to a seasonally adjusted 409K, while the four-week average fell to the lowest level since July 2008.

On Wednesday, U.S. data showed that a record 297,000 private-sector jobs were created in the in December, much stronger than the 100,000 consensus forecast.

The euro was also lower against the pound, with EUR/GBP shedding 0.52% to hit 0.8431.

Also Thursday, official data showed that retail sales across the euro zone fell unexpectedly in November as weak consumer demand in countries like Spain and Ireland outweighed strength in France and elsewhere.

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