The EUR trading close to a 14-month high after the release of tepid U.S. jobs data, as strong economic reports from the euro zone continued to support demand for the single currency. EUR/USD hit 1.3675 during European afternoon trade, the pair’s highest since November 15, 2011; the pair subsequently consolidated at 1.3656, climbing 0.59%. The pair was likely to find support at 1.3574, the session low and resistance at 1.3788, the high of November 14, 2011. In a report, the Bureau of Labor Statistics said that the U.S. economy added 157,000 jobs in January, less than the expected 160,000 increase, after a 196,000 rise the previous month. The report also showed that the U.S. unemployment rate rose unexpectedly last month, ticking up to 7.9% from 7.8% in December. Analysts had expected the unemployment rate to remain unchanged in January. Meanwhile, the euro remained supported after official data showed that the unemployment rate in the euro zone remained unchanged at 11.7% in December, compared to expectations for a rise to 11.9%. The report came after Markit research group said that Spain’s manufacturing purchasing managers’ index rose to 46.1 in January from a reading of 44.6 the previous month, beating expectations for an improvement to 45.5, while the euro zone’s manufacturing PMI ticked up to 47.9 in January from 47.5, beating expectations for the index to remain unchanged. Preliminary data showed that consumer price inflation in the single currency bloc slipped to an annualized rate of 2.0% in January from 2.2% the previous month. Analysts had expected consumer price inflation to remain unchanged last month. The euro was also sharply higher against the pound with EUR/GBP advancing 0.83%, to hit 0.8633. Also Friday, Markit said that the U.K. manufacturing PMI fell to 50.8 in January from a reading of 51.2 the previous month, more than the expected decline to 51.0. Later in the day, the Institute of Supply Management was to publish a report on manufacturing activity, while the University of Michigan was to produce revised data on consumer sentiment.
EasyForexNews Research Team