The euro rose to five week highs against the dollar on Friday as the dollar shrugged off a report showing that the U.S. economy added more jobs than expected in November.
EUR/USD ended Friday’s session at 1.3705, the strongest level since October 31. For the week, the pair was up 1.20%, the fourth straight weekly gain.
The pair is likely to find support at 1.3618, Friday’s low and resistance at 1.3745.
The U.S. economy added 203,000 jobs in November, above expectations for jobs growth of 180,000, the Labor Department said. The unemployment rate fell to a five year low of 7.0% from 7.3% in October.
The report came one day after official data showed that the U.S. economy grew at an annual rate of 3.6% in the three months to September, well above the preliminary estimate for 2.6%.
The robust data raised the possibility that the Federal Reserve may start to scale back its USD85 billion-a-month asset purchase program as soon as its next monthly meeting on December 17 - 18.
Demand for the single currency continued to be underpinned after European Central Bank President Mario Draghi indicated that further monetary easing by the bank is not imminent.
The ECB left rates on hold at record lows of 0.25% on Thursday, as widely expected. The bank raised its growth forecast for 2014 to 1.1% from 1.0% and predicted growth of 1.5% in 2015.
The euro ended the week at five year highs against the broadly weaker yen, with EUR/JPY settling at 140.95, the highest level since October 2008.
In the week ahead, the U.S. is to release what will be closely watched data on retail sales, while German trade data and euro zone data on industrial production will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Wednesday, as there are no relevant events on this day.Monday, December 9
In the euro zone, Germany is to release reports on the trade balance and industrial production. In addition, the Eurogroup of euro zone finance ministers is to hold talks in Brussels.Tuesday, December 10
ECB President Mario Draghi is to speak at an event in Rome; his comments will be closely watched.Thursday, December 12
ECB President Mario Draghi is to speak on monetary policy in the European Parliament in Strasbourg. Meanwhile, the ECB is to publish its monthly bulletin, while the euro zone is to release data on industrial production.
The U.S. is to produce data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity, as well as the weekly report on initial jobless claims.Friday, December 13
The U.S. is to round up the week with data on producer price inflation.
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