Forexpros – The euro extended its gains against safe haven currencies on Monday in wake of stronger-than-expected jobs data out of the U.S. on Friday, which sparked a risk-on trading session now entering its second day.
EUR/JPY hit 97.30 in Asian trading, up 0.10% and from an earlier low of 97.24 and off an earlier high of 97.70.
The pair was likely to find support at 97.15 and resistance at 97.80.
Strong U.S. jobs data released Friday extended the euro’s gains against the yen into Monday.
The U.S. economy added a net 163,000 net nonfarm payrolls in July, well above market expectations for a gain of 100,000 and also above June’s revised figure of 64,000.
The number continued to fuel a rally in Asian trading on Monday, which sent higher-yielding currencies like the euro gaining and the yen and U.S. dollar falling.
Strong U.S. service-sector data bolstered the pair as well.
In a report, the Institute for Supply Management said that its non-manufacturing purchasing managers’ index rose to a seasonally adjusted annual rate of 52.6 in July, up from 52.1 in June.
The service sector employs the bulk of the U.S. labor market.
Analysts had expected the index to rise 52.0.
In Europe, expectations that the European Central Bank is growing closer to reactivating its policy of buying sovereign debt to lower yields in Spain and Italy also sent the euro higher.
Greece, meanwhile, pledged over the weekend to meet austerity demands in exchange for funding from a EUR130 billion bailout facility arranged earlier this year, which further bolstered the euro.
Meanwhile the euro was up against the pound, with EUR/GBP gaining 0.20% to hit 0.7935.
On Monday, the eurozone will release a report on investor confidence, a key indicator of economic health.
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