The euro firmed against its key counterparts in European trading on Friday, as European stocks climbed ahead of the closely watched jobs data, with firmer oil prices underpinning sentiment.
The jobs report is expected to show an increase of about 190,000 jobs in February following the addition of 151,000 jobs in January. The unemployment rate is expected to hold at 4.9 percent.
Oil prices firmed up amid reports that OPEC members and Russia are planning to meet around March 20 to discuss output freeze.
The benchmark German 10-year bond yields rose 0.19 percent, while that of its 20-year equivalents were higher by 0.81 percent. Yields move inversely to bond prices.
Survey data from Markit Economics showed that Germany’s construction sector expanded at the fastest pace in nearly five years in February on housing activity.
The construction Purchasing Managers’ Index rose to 59.6 in February. The pace of expansion accelerated to the most marked since March 2011. A reading above 50 indicates expansion in the sector.
The euro held steady against its major rivals, except the yen, in Asian trading.
The euro appreciated to a 2-day high of 0.7753 against the pound and a 4-day high of 1.0888 against the franc, off its early lows of 0.7721 and 1.0851, respectively. The next possible resistance for the euro is seen around 0.785 against the pound and 1.10 against the franc.
The single currency advanced to weekly highs 1.0974 against the dollar and 124.83 against the yen, from its early lows of 1.0928 and 123.93, respectively. The euro may locate resistance around 1.11 versus the greenback and 126.00 against the yen.
The 19-nation currency strengthened to 1.4750 against the Canadian dollar, its strongest since March 1. On the downside, 1.49 is likely seen as the next resistance level for the euro.
The common currency bounced off to 1.4876 against the aussie and 1.6250 against the kiwi, from its previous low of 1.4824 and 2-month low of 1.6178, respectively. The euro is seen finding resistance around 1.50 against the aussie and 1.64 against the kiwi.
Looking ahead, Canada trade balance for January, Canada Ivey’s PMI for February, labour productivity for the fourth quarter, U.S. non-farms payrolls data for February, trade balance for January and U.S. Baker Hughes rig count data are due to be released in the New York session.
At 2:00 pm ET, Federal Reserve Bank of Dallas President Robert Kaplan speaks on economic conditions and monetary policy at the North Texas Commission Dallas Regional Chamber’s and Fort Worth Chamber of Commerce’s joint event at DFW Airport in Texas.
The material has been provided by InstaForex Company – www.instaforex.com