Forexpros – The euro traded lower against the dollar Friday after a disappointing June jobs report in the U.S. sent investors ditching higher-yielding currencies and stocks while running for the dollar in search of safe harbor.
In U.S. trading on Friday, EUR/USD was trading down 0.90% at 1.2279, up from a session low of 1.2267 and off from a high of 1.2401.
The pair was likely to find support at 1.2267, the earlier low, and resistance at 1.2408, the high from June 28.
Earlier Friday, the U.S. Bureau of Labor Statistics reported the economy added a net 80,000 nonfarm payrolls in June, below market forecasts for a gain of around 90,000.
April figures were revised to 68,000 from 77,000 nonfarm payrolls, while May’s numbers were revised to 77,000 from 69,000.
The news sent the euro falling and the dollar rising as investors embraced a risk-off trading strategy on sentiment the U.S. economy continues to battle headwinds.
The euro also traded lower on the heels of a European Central Bank decision to trim its benchmark interest rate 25 basis points to 0.75%.
A Bank of England decision to inject GBP50 billion into the economy via stimulus measures followed by interest rate cuts in China pressured the dollar upwards as well.
Spanish industrial production fell 6.1% in May, better than market forecasts for a contraction of 8.5%, which gave the euro some support.
April’s industrial production contracted 8.3%.
In the U.S. on Thursday, the Department of Labor reported that weekly initial jobless claims hit a six-month low at 374,000 last week, down from a previous figure of 388,000 and below market calls for 385,000 claims.
The market shrugged off Thursday’s private-sector employment figures, which painted a healthier picture of the U.S. labor market than Friday’s official data.
ADP Employer Services on Thursday reported that private U.S. companies added 176,000 workers in June, compared with 136,000 in May.
The service sector in the U.S., however, slipped in June, a separate report shows.
The Institute of Supply Management’s non-manufacturing purchasing managerss index fell to 52.1 in June from 53.7 in May.
Markets were predicting a 53.0 reading.
International Monetary Fund Managing Director Christine Lagarde, meanwhile, said the fund would likely cut its global growth forecasts, which further fueled demand for dollars at the euro’s expense.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP down 0.56% at 0.7937 and EUR/JPY trading down 1.26% at 97.79.
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