Investing.com - The euro was trading close to six-week lows against the dollar on Monday as Friday’s stronger-than-expected U.S. jobs data reinforced expectations that the Federal Reserve will soon start to taper its asset purchase program.
EUR/USD hit 1.2812 during late Asian trade, the session low; the pair subsequently consolidated at 1.2827, dipping 0.04%.
The pair was likely to find support at 1.2750, the low of March 27 and resistance at 1.2875.
Demand for the dollar continued to be underpinned after official data showed that the U.S. economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists.
May's figure was revised up to 195,000 from a previously reported 175,000. The unemployment rate remained unchanged at 7.6% in June.
The euro remained under pressure after European Central Bank President Mario Draghi said last week that the bank expects to maintain interest rates at current or lower levels for an “extended” period of time.
The euro showed little reaction after official data on Monday showed that Germany posted a smaller-than-expected trade surplus of EUR14.1 billion in May, as exports decreased by 4.8% on a year-over-year basis and imports fell by 2.6%.
Analysts had expected a trade surplus of EUR17.5 billion.
The euro was fractionally lower against the pound, with EUR/GBP inching down 0.04% to 0.8611 and slid lower against the yen, with EUR/JPY down 0.17% to 129.56.
Later in the day, Germany was to produce official data on industrial production, while the eurogroup of euro zone finance ministers were to hold talks in Brussels.
In addition, ECB President Mario Draghi was to testify before the committee on Economic and Monetary Affairs in the European Parliament in Brussels.
