The euro weakened vis-Ã -vis the U.S. dollar today as the single currency tested bids around the US$ 1.4785 level and was capped around the $1.4950 level. Technically, todayâ€™s intraday low was right around the 76.4% retracement of the move from $1.4920 to $1.4360. The common currency lost ground despite the release of a weak U.S. January non-farm payrolls report that saw 17,000 jobs lost last month, the first decline in years. Also, the January unemployment rate printed at 4.9% and average hourly earnings were up 0.2% m/m and +3.7% y/y. There was a 55,000 jobs downward revision to Novemberâ€™s tally and a +64,000 upward revision to Decemberâ€™s tally. Economists were expecting new jobs creation of about 75,000 last month. Aside from growing weakness in the U.S. labour market, todayâ€™s data suggest that wages are not keeping pace with inflation and this may give the Federal Reserve more scope to expand monetary policy further, absent second-round inflation effects. Other data released in the U.S. saw the January ISM manufacturing index print at 50.7 while the prices paid sub-index jumped to 76.0, up from 59.0 in September. Additionally, final January University of Michigan consumer sentiment fell to 78.4 from 80.5 previously and December construction spending was off 1.1%. In eurozone news, the EMU-15 January manufacturing PMI survey improved to 52.8 while Germanyâ€™s improved to 54.4. Euro bids are cited around the US$ 1.4685 level.
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