The euro extended losses against the USD on Friday, after the release of strong US jobs data added to optimism over a recovery in the US labor market, sending the greenback broadly higher. EUR/USD hit 1.3006 during European afternoon trade, the session low; the pair subsequently consolidated at 1.3027, dropping 0.63%. The pair was likely to find support at 1.2929, the low of December 11 and resistance at 1.3134, the session high. The dollar strengthened broadly, after the US Department of Labor Statistics said the economy added 236,000 jobs in February, far more than the expected 160,000 increase, after a 119,000 rise the previous month. The US private sector added 246,000 jobs, beating expectations for a 167,000 increase, following January’s 140,000 rise. The report also showed that the US unemployment rate ticked down unexpectedly to 7.7% in February, from 7.9% the previous month. Analysts had expected the unemployment rate to remain unchanged last month. The data came after the Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits fell to a seasonally adjusted 340,000 last week, compared to expectations for an increase to 355,000, fuelling hopes for a recovery in the US labor market. The euro was also lower against the pound with EUR/GBP shedding 0.29%, to hit 0.8716.
EasyForexNews Research Team