Source: Investing.com
Investing.com - The euro slid lower against the dollar on Friday after data showed that the U.S. economy added jobs for a fourth straight month in May, a day after the European Central Bank unveiled a package of measures to avert the threat of persistently low inflation in the euro area.
Euro slips lower against dollar after U.S. jobs report
The Department of Labor reported that the U.S. economy added 217,000 jobs last month, just under expectations for jobs growth of 218,000, while April's figure was revised to 282,000.
The unemployment rate remained steady at a five-and-a-half year low of 6.3%.
EUR/USD initially touched a two-week high of 1.3677 following the release of the data, before pulling back to 1.3642 late Friday. For the week, the pair was 0.34% higher.
The U.S. jobs report came one day after the ECB announced fresh steps to stave off low inflation in the euro zone, briefly sending the single currency to four month lows of 1.3502 against the dollar, before later erasing the day’s losses.
The ECB cut the main refinancing rate in the euro area to a record low 0.15% and imposed negative deposit rates on commercial lenders, in a bid to stimulate lending to businesses.
The bank also implemented a new Long-Term Refinancing Operation, designed to help banks lend to small companies and said it would "intensify" its preparatory work on the 'asset-backed security' market.
The ECB acted after a report on Wednesday showed that the annual rate of inflation in the euro zone slowed to 0.5% in May, well below the bank’s target of close to but just under 2%.
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