Forex - EUR/USD firms on lackluster U.S. July jobs report

The euro firmed against the dollar on Friday after data revealed the U.S. economy picked up far fewer jobs in July than markets were expecting.

The data weakened the dollar by dashing hopes U.S. recovery was gaining steam and close to prompting the Federal Reserve to begin tapering dollar-weakening stimulus measures.

In U.S. trading on Friday, EUR/USD was up 0.61% at 1.3288, up from a session low of 1.3190 and off from a high of 1.3294.

The pair was likely to find support at 1.3166, the low from July 25, and resistance at 1.3345, Wednesday's high.

The Bureau of Labor Statistics said the U.S. economy added 162,000 jobs in July, missing expectations for an increase of around 189,000. 

The report also revealed that the U.S. unemployment rate ticked down to 7.4% in July, from 7.6% the previous month. Analysts had expected the unemployment rate to slip to 7.5% last month. 

Still, the numbers dampened expectations for the Federal Reserve to begin tapering its USD85 billion monthly bond-buying program, seeks to spur recovery by keeping long-term interest rates low, weakening the greenback in the process.

The Fed is due to meet in September to discuss policy, though concerns began to build that monetary authorities may wait until December to begin tapering the stimulus program and let the economy stand on its own, which would support the greenback when such a decision takes place.

Meanwhile in the euro zone, official data showed that the number of unemployed people in Spain fell for the fifth consecutive month in July, declining by 64,900 after a 127,200 fall the previous month. 

Analysts had expected the number of unemployed people to fall by 80,000 last month.

The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 0.56% at 0.8688 and EUR/JPYtrading down 0.11% at 131.33.

The London-based Markit research group reported earlier that its U.K. construction purchasing managers' index rose to 57.0 in July from 51.0 in June, blowing past expectations for a rise to 51.5 and expanding at the fastest pace since July 2010. 

A separate report showed that house price inflation in the U.K. rose 0.8% last month, more than the expected 0.4% gain after an increase of 0.3% in June.

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Forex - EUR/USD remains higher after downbeat U.S. data

The euro remained higher against the U.S. dollar on Friday, after downbeat U.S. data sparked fresh concerns over the strength of the U.S. economic recovery, weighing broadly on the greenback. 

EUR/USD hit 1.3279 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.3269, gaining 0.47%. 

The pair was likely to find support at 1.3166, the low of July 25 and resistance at 1.3311, Thursday's high. 

Data showed that U.S. factory orders rose less-than-expected in June, increasing 1.5% after a 3% rise the previous month. Analysts had expected factory orders to rise 2.3% in June. 

Separately, the Bureau of Labor Statistics said the U.S. economy added 162,000 jobs in July, disappointing expectations for a 184,000, after an increase of 188,000 the previous month. 

The private sector added 161,000 jobs last month, less than the expected 189,000 increase, after 196,000 jobs were created in June. 

However, the report also showed that the U.S. unemployment rate ticked down to 7.4% in July, from 7.6% the previous month. Analysts had expected the unemployment rate to slip to 7.5% last month. 

The data came amid growing uncertainty over the future of the Federal Reserve's stimulus program, after the central bank said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities and gave no hint of plans to pare its bond-buying program. 

In the euro zone, official data earlier showed that the number of unemployed people in Spain fell for the fifth consecutive month in July, declining by 64,900 after a 127,200 fall the previous month. 

Analysts had expected the number of unemployed people to fall by 80,000 last month. 

The euro was lower against the pound with EUR/GBP shedding 0.41%, to hit 0.8700. 

Also Friday, Markit research group said the U.K. construction purchasing managers' index rose to 57.0 in July, from a reading of 51.0 the previous month, blowing past expectations for a rise to 51.5 and expanding at the fastest pace since July 2010. 

A separate report showed that house price inflation in the U.K. rose 0.8% last month, more than the expected 0.4% gain, after an increase of 0.3% in June. 

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U.S. stocks fall after disappointing jobs data; Dow Jones down 0.43%

U.S. stocks opened lower on Friday, after the release of U.S. nonfarm payrolls and umemployment data painted a mixed picture of the strength of the U.S. job market's recovery. 

During early U.S. trade, the Dow Jones Industrial Average declined 0.43%, the S&P 500 index shed 0.33%, while the Nasdaq Composite index edged down 0.12%. 

The Bureau of Labor Statistics said the U.S. economy added 162,000 jobs in July, disappointing expectations for a 184,000, after an increase of 188,000 the previous month. 

The private sector added 161,000 jobs last month, less than the expected 189,000 increase, after 196,000 jobs were created in June. 

The report also showed that the U.S. unemployment rate ticked down to 7.4% in July, from 7.6% the previous month. Analysts had expected the unemployment rate to slip to 7.5% last month. 

The data came amid growing uncertainty over the future of the Federal Reserve's stimulus program, after the central bank said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities and gave no hint of plans to pare its bond-buying program. 

American International Group soared 4.25% after the insurer, that repaid a U.S. bailout last year, declared its first dividend since the rescue and authorized the repurchase of USD1 billion in stock after profit climbed 17%. 

LinkedIn added to gains, rallying 8.83%, even as the online professional-networking service issued, after the closing bell on Thursday, a revenue forecast for the current period of USD367 million to USD373 million, trailing analysts' average estimate. 

On the downside, Bank of America retreated 0.74%, after saying federal and state agencies plan to press more civil claims tied to mortgage and debt offerings. The U.S. lender will therefore face another round of legal battles tied to home loans and underwriting. 

Fellow U.S. lenders Citigroup and JP Morgan were also trading lower, sliding 0.59% and 0.74% respectively. 

In earnings news, Chevron plummeted 2% after reporting a 26% decline in net income due to lower oil prices and maintenance work at its U.S. refineries. 

Viacom, on the other hand, soared 6.04% after reporting a 14% rise in revenue, thanks to strong advertising and affiliate fees at its cable networks. 

Across the Atlantic, European stock markets were mixed to lower. The EURO STOXX 50 edged up 0.07%, France’s CAC 40 slipped 0.11%, Germany's DAX fell 0.22%, while Britain's FTSE 100 retreated 0.59%. 

During the Asian trading session, Hong Kong's Hang Seng Index gained 0.46%, while Japan’s Nikkei 225 Index surged 3.29%. 

Later in the day, the U.S. was to release a report on factory orders

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Dollar turns broadly lower after U.S. employment data

The U.S. dollar turned broadly against the other major currencies on Friday, as demand for the greenback weakened after the release of downbeat U.S. nonfarm payrolls data painted a mixed picture of the strength of the U.S. job market's recovery. 

During European afternoon trade, the dollar was lower against the euro, with EUR/USD climbing 0.54% to 1.3279. 

The greenback weakened broadly after the Bureau of Labor Statistics said the U.S. economy added 162,000 jobs in July, disappointing expectations for a 184,000, after an increase of 188,000 the previous month. 

The private sector added 161,000 jobs last month, less than the expected 189,000 increase, after 196,000 jobs were created in June. 

However, the report also showed that the U.S. unemployment rate ticked down to 7.4% in July, from 7.6% the previous month. Analysts had expected the unemployment rate to slip to 7.5% last month. 

The data came amid growing uncertainty over the future of the Federal Reserve's stimulus program, after the central bank said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities and gave no hint of plans to pare its bond-buying program. 

In the euro zone, official data showed that the number of unemployed people in Spain fell for the fifth consecutive month in July, declining by 64,900 after a 127,200 fall the previous month. 

Analysts had expected the number of unemployed people to fall by 80,000 last month. 

The greenback was also lower against the pound, with GBP/USDjumping 0.93% to 1.5257. 

Markit research group said the U.K. construction purchasing managers' index rose to 57.0 in July, from a reading of 51.0 the previous month, blowing past expectations for a rise to 51.5 and expanding at the fastest pace since July 2010. 

A separate report showed that house price inflation in the U.K. rose 0.8% last month, more than the expected 0.4% gain, after an increase of 0.3% in June. 

Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY sliding 0.41% to trade at 99.14, and with USD/CHFshedding 0.56% to 0.9313. 

In Switzerland, data showed that the SVME PMI rose to 57.4 in July, from a reading of 51.9 the previous month, the highest level since June 2011.
Analysts had expected the index to rise to 52.5 last month. 

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.20% to 1.0366, AUD/USDeasing 0.06% to 0.8920 and NZD/USD slipping 0.14% to 0.7883. 

The Australian Bureau of Statistics earlier said that producer price inflation rose 0.1% in the second quarter, less than the expected 0.5% increase, after a 0.3% gain in the previous quarter. 

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.39% to 82.10. 

Later in the day, the U.S. was to release a report on factory orders.

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Forex - EUR/USD extends gains after U.S. jobs data

The euro extended gains against the U.S. dollar on Friday, after the release of downbeat U.S. nonfarm payrolls data painted a mixed picture of the strength of the U.S. job market's recovery, weighing on the greenback. 

EUR/USD hit 1.3279 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3277, gaining 0.54%. 

The pair was likely to find support at 1.3166, the low of July 25 and resistance at 1.3311, Thursday's high. 

The Bureau of Labor Statistics said the U.S. economy added 162,000 jobs in July, disappointing expectations for a 184,000, after an increase of 188,000 the previous month. 

The private sector added 161,000 jobs last month, less than the expected 189,000 increase, after 196,000 jobs were created in June. 

However, the report also showed that the U.S. unemployment rate ticked down to 7.4% in July, from 7.6% the previous month. Analysts had expected the unemployment rate to slip to 7.5% last month. 

The data came amid growing uncertainty over the future of the Federal Reserve's stimulus program, after the central bank said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities and gave no hint of plans to pare its bond-buying program. 

In the euro zone, official data earlier showed that the number of unemployed people in Spain fell for the fifth consecutive month in July, declining by 64,900 after a 127,200 fall the previous month. 

Analysts had expected the number of unemployed people to fall by 80,000 last month. 

The euro was lower against the pound with EUR/GBP shedding 0.42%, to hit 0.8700. 

Also Friday, Markit research group said the U.K. construction purchasing managers' index rose to 57.0 in July, from a reading of 51.0 the previous month, blowing past expectations for a rise to 51.5 and expanding at the fastest pace since July 2010. 

A separate report showed that house price inflation in the U.K. rose 0.8% last month, more than the expected 0.4% gain, after an increase of 0.3% in June. 

Later in the day, the U.S. was to release a report on factory orders.

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U.S. non-farm payrolls rise less-than-expected

U.S. non-farm payrolls rose less-than-expected last month, official data showed on Thursday.

In a report, the U.S. Department of Labor said non-farm payrolls rose to a seasonally adjusted 162K, from 188K in the preceding month whose figure was revised down from 195K.

Analysts had expected U.S. non-farm payrolls to rise 184K last month.

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