Investing.com

Investing.com - The greenback traded largely lower against most major currencies on Friday after data revealed the U.S. economy added fewer jobs in January than expected.



In U.S. trading on Friday, EUR/USD was up 0.25% at 1.3625.



The U.S. Labor Department reported earlier that the economy added 113,000 jobs in January, less than an expected 185,000 increase. December''s figure was revised up to a 75,000 rise from a previously estimated 74,000 increase.



The report also showed that 142,000 jobs were added in the U.S. private sector last month, compared to expectations for a 185,000 increase. In December, the number of jobs created in the private sector was revised up to 89,000 from a previously estimated 87,000.



The U.S. unemployment rate ticked down to 6.6% last month, from 6.7% in December. Analysts had expected the unemployment rate to remain unchanged in January.



The numbers softened the dollar by stoking expectations that the Federal Reserve will taper its USD65 billion monthly bond-buying program gradually.



Fed asset purchases tend to weaken the dollar by driving down interest rates as long as they remain in effect.



Capping the euro''s gains, however, German industrial production fell 0.6% in December, confounding expectations for a 0.5% increase, after an upwardly revised 2.4% gain the previous month.



A separate report showed that Germany''s trade surplus narrowed to EUR18.5 billion in December, from EUR18.9 billion the previous month. Analysts had expected the trade surplus to narrow to EUR17.3 billion in December.



The dollar was up against the yen, with USD/JPY up 0.21% at 102.33, and down against the Swiss franc, with USD/CHF down 0.33% at 0.8980.



The greenback was down against the pound, with GBP/USD up 0.51% at 1.6406.



The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.40% at 1.1026, AUD/USD up 0.07% at 0.8966 and NZD/USD up 0.53% at 0.8292.



The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.25% at 80.78.











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