Euro Weakens Versus Major Rivals After U.S. Jobs Report

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The euro saw some weakness versus other majors as traders turned to safer currency investments after data showed the U.S. unemployment rate surged to a new 26-year high above 10 percent.

The euro moved slightly lower amid choppy trading against the dollar, trading near 1.4840. The European currency hit a 10-day high above $1.49 yesterday and moved toward a 14-month high.

The U.S. Labor Department report showed that non-farm payroll employment fell by 190,000 jobs in October following a revised decrease of 219,000 jobs in September. Economists had expected a decrease of about 175,000 jobs compared to the loss of 263,000 jobs originally reported for the previous month.

With the continued drop in jobs, the unemployment rate jumped to 10.2 percent in October from an unrevised 9.8 percent in September. The unemployment rate had been expected to show a more modest increase to 9.9 percent.

The euro slipped near 0.8930 against the euro, slipping to a lower end of a recent trading range. The pair has been range-bound for 1 1/2 weeks.

UK input prices for materials and fuels purchased by manufacturers unexpectedly edged up 0.1% from the previous year, reversing a revised 6.2% fall in September, the Office for National Statistics reported on Friday. Input price inflation turned positive for the first time since February. The decline for September was revised from a 6.5% fall.

The euro fell to a two-day low against the yen near 133.20. The drop took the European currency below a short-term range.

In the Eurozone, German factory orders rose for a seventh month in September due to an increase in foreign orders, data released by the Federal Ministry of Economics and Technology showed Friday.

German industrial orders rose 0.9% month-on-month in September, the Federal Ministry of Economics and Technology said Friday. Economists had expected 1% rise.

Yesterday, the European Central Bank left its key interest rate unchanged at a record low of 1% for the sixth straight month in November. President Jean-Claude Trichet gave a strong indication that the central bank is preparing to rollback unconventional measures to mop up excess liquidity from the Eurozone economy.

(Market News Provided by RTTNews)