Euro weakens after poor US jobs data

The euro weakened against the US dollar by 1.39 cents (0.98%) yesterday to finish the day at $1.4001.

• In trading yesterday, the euro weakened against the dollar after surprisingly poor US jobs data and dovish comments by the ECB President knocked risk appetite in the market.
  
• US non-farm payrolls dropped by a larger-than-expected amount last month, raising investor concern about the pace of the economic recovery. Elsewhere, cautionary comments from the ECB President Jean-Claude Trichet, who said growth in the eurozone would not return until late 2010, weighed on the single currency. The central bank also decided to leave their interest rates on hold at 1.00%.
  
• The single currency’s falls were further exacerbated yesterday after ratings agency Moody’s downgraded Ireland’s credit rating from AAA to AA1. They also gave the country a “negative” outlook.
  
• In trading so far today, the euro has gained ground against the greenback as investors continued to pick over yesterday’s announcements.
  
• There are no major announcements due in the US or eurozone today.