Euro lowered against the US dollar on Friday after mixed data was released from the United States, fueling uncertainty over the future moves by FED, regarding its asset purchases.
EUR/USD climbed as high as 1.3286 during European afternoon trade, highest for the current session, after which consolidation followed at 1.3230. Support was expected at May 1st low, 1.3160, while resistance was to be met at Thursdays high, 1.3306.
Minutes ago the Bureau of Labor Statistics in the United States announced that economy added 175 000 new job posts during May, submitting a signal that economic recovery was on the move. Non-Farm employment was revised down by a total of 12 000 during the last two months. Analysts predicted the change in Non-Farm Payrolls will reach 163 000. Released data implied that US labor market gained momentum, despite the economic concerns about restrained government expenditures. However, economic recovery still showed signs of deceleration, according to experts. The Federal Reserve Bank is yet to determine whether US economy managed to add jobs at a sufficient rate, so that the bank could move forward to reduce scale of easing.
Additionally, US Unemployment Rate rose to 7.6% in May from 7.5% in April. Preliminary estimates showed an unchanged rate, 7.5%.
Meanwhile, earlier today official report stated that Industrial Production in Germany increased by 1.0% in April on annual basis, surprising estimates, which showed a 0.7% drop, and improving significantly in comparison with the previous period. Revised data showed a 2.4% drop during April 2012, compared to April 2011. In monthly terms, Industrial Production recorded a 1.8% rise in April, improving in comparison with the 1.2% increase in March. Projections showed no change in the indicator. It became clear that construction activity contributed to these results, adding more proof that Euro zones largest economy gained momentum on its path of recovery. Construction output in Germany climbed by 6.7% in April after the harsh winter season.
Today a separate report showed that Germany’s Trade Balance increased to 18.1 billion EUR in April, surpassing projections that the increase would be 17.0 billion EUR. However, trade surplus slowed down in April in comparison with the March data, 18.8 billion EUR.
The euro advanced against the British pound, as EUR/GBP was up by 0.26%, climbing to 0.8511.
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