Investing.com - The dollar firmed against the euro and most other major currencies on Thursday after official data revealed the U.S. economy added far more payrolls than expected in June.
In U.S. trading, EUR/USD was down 0.38% at 1.3607, up from a session low of 1.3597 and off a high of 1.3664.
The pair was likely to find support at 1.3576, the low from June 26, and resistance at 1.3700, Monday''s high.
The dollar firmed after the U.S. Department of Labor reported that non-farm payrolls rose by 288,000 in June, easily surpassing expectations for an increase of 212,000. May''s figure was revised up to a gain of 224,000 from 217,000.
The unemployment rate ticked down to 6.1% from 6.3% in May. Analysts had expected the jobless rate to hold steady at 6.3% last month.
A day earlier payroll processor ADP reported in its nonfarm payrolls report that the U.S private sector added 281,000 jobs last month, beating expectations for an increase of 200,000.
The numbers firmed the dollar by keeping expectations on track for the Federal Reserve to continue tapering stimulus programs this year and raise interest rates the next.
Fed stimulus programs such as monthly bond purchases aim to spur recovery by suppressing long-term interest rates, weakening the dollar as a side effect.
Also on Thursday, the Institute of Supply Management said its non-manufacturing purchasing managers'' index fell to 56.0 in June from 56.3 in May. Analysts had expected the index to hold steady at 56.3 in June.
Meanwhile in Europe, ECB President Mario Draghi reiterated the bank’s forward guidance that rates will remain on hold at present or lower levels for an extended period.
He emphasized that "the governing council is also unanimous in its commitment to use unconventional instruments'' if necessary, to address the risk of too-prolonged period of low inflation.”
The ECB left all rates on hold earlier Thursday, in a widely anticipated decision, after cutting rates to record lows in June.
Draghi said unemployment rate in the euro zone is still too high and warned that risks to the economy remain to the downside.
The ECB president also announced that it will shift to a six-week meeting cycle from January 2015 and that it will start publishing meeting minutes.
Elsewhere, the euro was down against the pound, with EUR/GBP down 0.25% at 0.7937, and up against the yen, with EUR/JPY up 0.04% at 139.07.
On Friday, Germany is to publish data on factory orders. Markets in the U.S. are to remain closed for the Independence Day holiday.