The Euro weakened against the US Dollar on Friday after a better than expected US employment report bolstered demand for the ‘Greenback’ and increased optimism over the strength of the world’s largest economy.
According to the latest Nonfarm payrolls data US employers created the most jobs in two years to send the unemployment rate tumbling to 6.3%, the lowest-level seen since September 2008.
Economists had been expecting a decline to 6.6%.
The data released by the Washington based Labour Department showed that employers added 288,000 new jobs in April, the biggest increase seen since January 2012 and smashed forecasts for a rise of 218,000.
The private sector created 273,000 new positions last month, again beating expectations for a figure of 210,000.
“The economy is gathering momentum after the bad winter. The unemployment rate will stay in its downward trend which means tapering will continue,” said a senior economist at Barclays Plc.
The Euro to US Dollar (EUR/USD) exchange rate is currently around 1.3818.
Earlier in the session the Euro received some support from data which showed that the recovery in the Eurozone’s manufacturing sector picked up speed in April. Markit’s Manufacturing PMI increased to 53.4, beating last month’s figure of 53.0 and expectations for a figure of 53.3.
“Recent economic evidence remains consistent with the European Central Bank’s baseline scenario which is that of a gradual recovery, there are concerns about the confidence in France and the extent to which that could restrain economic growth this year and next,” said Philip Shaw from Investec.
Another report showed that unemployment across the 18-member Eurozone remained close to record highs by coming in at 11.8%.
Against the Pound the Euro was little changed following the mixed data out of the Eurozone and the Pound was unable to make gains due to a softer than forecast UK Construction PMI report.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3818 ,
Euro,,British Pound,0.8208 ,
Euro,,Australian Dollar,1.4993 ,
Euro,,Canadian Dollar,1.5187 ,