Investing.com - Stronger-than-expected jobs data out of the U.S. coupled with weak factory numbers out of Germany and continued European banking worries sent the dollar rising and the euro declining on Friday.
EUR/USD hit 1.2719 in early afternoon U.S. trading, down 0.55%, up from a session low of 1.2697 and off from a high of 1.2813.
The pair was likely to test support at 1.2697, Friday's low, and resistance at 1.3077, Tuesday's high.
In the U.S., the Bureau of Labor Statistics reported the economy added a net 200,000 nonfarm payrolls in December, outpacing estimates for a 150,000 gain.
The U.S. unemployment now stands at 8.5%, down from a revised 8.7% in November.
The news confirmed market sentiments that things are looking up for the U.S. economy.
"Signs of strength in the U.S. economic recovery at the time Europe is in recession may at the margin help support the dollar against the euro," said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London, according to Bloomberg.
Other experts agreed that the news was bullish for the greenback.
"The news coming from the U.S. has been OK," said Derek Mumford, a director in Sydney at Rochford Capital, a currency- risk management company, Bloomberg added.
"We’re seeing just generally some U.S. dollar strength, which is mainly reflected in the euro."
In Europe, meanwhile, German factory orders slipped 4.8% in November, outpacing analyst expectations for a 1.6% decline.
Weak economic activity in Europe's largest economy coupled with bank moves to deposit more and more money in the European Central Bank's overnight deposit accounts instead of lending it out cemented fears that the euro is in for rough seas ahead.
Meanwhile, the euro was down against the pound and down against the yen, with EUR/GBP inching down 0.01% to 0.8252 and EUR/JPY falling 0.59% at 98.05.
On Monday, U.S. consumer credit figures will be released while in Europe, traders will keep an eye on Swiss unemployment and French inflation figures.
Also on Monday, Chinese economic growth, inflation and trade balance figures will publish.
EUR/USD hit 1.2719 in early afternoon U.S. trading, down 0.55%, up from a session low of 1.2697 and off from a high of 1.2813.
The pair was likely to test support at 1.2697, Friday's low, and resistance at 1.3077, Tuesday's high.
In the U.S., the Bureau of Labor Statistics reported the economy added a net 200,000 nonfarm payrolls in December, outpacing estimates for a 150,000 gain.
The U.S. unemployment now stands at 8.5%, down from a revised 8.7% in November.
The news confirmed market sentiments that things are looking up for the U.S. economy.
"Signs of strength in the U.S. economic recovery at the time Europe is in recession may at the margin help support the dollar against the euro," said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London, according to Bloomberg.
Other experts agreed that the news was bullish for the greenback.
"The news coming from the U.S. has been OK," said Derek Mumford, a director in Sydney at Rochford Capital, a currency- risk management company, Bloomberg added.
"We’re seeing just generally some U.S. dollar strength, which is mainly reflected in the euro."
In Europe, meanwhile, German factory orders slipped 4.8% in November, outpacing analyst expectations for a 1.6% decline.
Weak economic activity in Europe's largest economy coupled with bank moves to deposit more and more money in the European Central Bank's overnight deposit accounts instead of lending it out cemented fears that the euro is in for rough seas ahead.
Meanwhile, the euro was down against the pound and down against the yen, with EUR/GBP inching down 0.01% to 0.8252 and EUR/JPY falling 0.59% at 98.05.
On Monday, U.S. consumer credit figures will be released while in Europe, traders will keep an eye on Swiss unemployment and French inflation figures.
Also on Monday, Chinese economic growth, inflation and trade balance figures will publish.