US Dollar to Euro (USD/EUR) Exchange Rate softens as last weeks jobs data weighs

The US Dollar to Euro (USD/EUR) and USD to GBP Exchange Rate fell on Monday in a session devoid of major data releases.

The single currency advanced as the ‘Greenback’ continued to be weighed by last Friday’s disappointing US jobs data and the Euro found support from comments made by European Central Bank officials which eased some of the worries regarding the possible implementation of a quantitative easing programme.

Last week’s non-farm payrolls report disappointed economists by showing that US employers added fewer jobs than hoped in March. According to the figures employers created 192,000 jobs, a figure which was below the 200,000 hoped for by economists.

The Euro received support from better than expected industrial production data out of Spain and Germany as well as being bolstered by comments made by ECB policy makers.

Yves Mersch said on Monday that while the ECB was working on its plans to introduce large scale asset purchases to tackle the threat of deflation, the programme was not yet required. Separately the president of the Bundesbank Jen Weidmann said that he believes that monetary policy cannot solve the regions financial crisis and called for the Eurozone’s political leaders to keep reforming their economies.

Against the Pound the US Dollar was also trading softer. With a lack of domestic data out of the UK today the currency was little moved against most of its major peers. Economists and investors are instead looking ahead to tomorrow’s production data and Thursday’s Bank of England Policy meeting.

The ‘Greenback’ could see more volatility on Tuesday if the latest chain store sales data disappoint. Concerns are growing that the US economy is struggling to shake off the impacts of the winter’s poor weather.