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The euro traded lower against the US dollar on Friday, closing the distance to five-week lows, registered already during Thursdays trade, as market players awaited the crucial unemployment rate and non-farm payrolls data from the United States.

EUR/USD slid to a session low at 1.2888 at 5:40 GMT, after which consolidation followed at 1.2896, still down by 0.14% for the day. Support was likely to be received at May 29th low, 1.2837, while resistance was to be encountered at May 29th high, 1.2976.

On Thursday the European Central Bank left its base interest rates without change, as initially expected, at 0.50%, but what caused the single currency to plunge was the regular press conference of the bank. ECB President Mario Draghi said the decision to give forward guidance on interest rates was taken unanimously by policymakers and was “a very significant step forward” for the bank. He also announced that risks to economic growth in the Euro zone remained “on the downside” and that monetary policy will remain accommodative for as long as necessary. Some experts suggested that such statement could make way for a possible new cuts in rates in the future.

Meanwhile, investors awaited the series of US data later in the trading day, which could give clues about the future moves by the Federal Reserve, regarding its monthly bond purchases. Initial estimates showed a slight decrease in the Unemployment rate in the United States to 7.5% in June from 7.6% a month ago and new 165 000 job positions added by economy in June.

On Wednesday official data stated that US private sector added 188 000 jobs in June, beating expectations of an increase by 160 000.

The euro traded steadily against the British pound, as EUR/GBP cross moved 0.04% higher to 0.8571.

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