US employment data benefits USD vs. EUR

The euro weakened by 2.15 cents (1.52%) against the US dollar on Friday, closing the day at $1.3967.

• In trading on Friday, the euro weakened against the dollar as official government employment data showed the US shed 345k jobs in May. This was much better than the 540k expected, although it did result in the unemployment rising to 9.4%.
  
• Economists said the fact that the greenback strengthened after the jobs data, rather than fall as risk aversion fell and investors abandoned the US currency in search of yield, meant the tide could be turning in its favour. There was also an element of profit-taking as traders capitalised on the euro’s sharp rally earlier in the week.
  
• In trading so far today, the euro has resumed its slide against the dollar as investors continue to digest last night’s European election results.
  
• There are no major announcements due in the US or eurozone today.