Investing.com - The euro hit its highest level in six months against the U.S. dollar on Friday as optimism over the likely outcome in the French presidential elections offset data showing a rebound in U.S. jobs growth last month.
EUR/USD was at 1.0998, the strongest level since early November in late trade.
Opinion polls on Friday showed centrist Emmanuel Macron with a 23- to 26-percentage-point lead over anti-EU far-right candidate Marine Le Pen ahead of Sunday’s second-round vote.
The expected victory of Macron would be taken by markets as a sign that political risk in Europe is receding.
Meanwhile, the Labor Department reported Friday that the U.S. economy added 211,000 jobs last month, beating expectations for a gain of 185,000 and the unemployment rate ticked down to 4.4%, a near a 10-year low.
The report also showed that the prior month’s figure of 98,000 was revised down to an even lower 79,000.
Average hourly earnings rose 0.3% in April. However, downward revisions to previous months lowered the year-on-year increase to 2.5%, the smallest gain since August 2016, from 2.6% in March.
The jobs data did little to alter the view that the Federal Reserve will raise interest rates in June. Markets are pricing in around a 75% chance of a hike at the Fed's June meeting, according to Investing.com’s Fed Rate Monitor Tool.
The dollar was higher against the yen, with USD/JPY up 0.22% to 112.71, not far from Thursday’s almost seven-week highs of 113.04.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.19% at 98.53 after initially touching an almost six-month low of 98.41 after the jobs data.
For the week the index was down 0.37%, its fourth straight weekly decline.
The outcome of the French presidential elections is likely to set the tone in financial markets this week.
Investors will also be looking ahead to Friday’s U.S. data on inflation and retail sales to gauge if the economy is on a strong enough footing for another rate hike as soon as next month.
Monetary policy meeting in the UK and New Zealand will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 8
Australia is to release data on building approvals and business confidence.
China is to publish trade data.
The UK is to produce industry data on house prices.
Tuesday, May 9
Australia is to release data on retail sales.
Canada is to publish a report on building permits.
Dallas Fed President Robert Kaplan is to speak at an event in Dallas.
Wednesday, May 10
China is to release data on consumer and producer price inflation.
ECB President Mario Draghi is to speak about the impact of monetary policy at the Dutch House of Representatives, in Netherlands
The U.S. is to release data on import prices.
Thursday, May 11
The Reserve Bank of New Zealand is to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision. The announcement is to be followed by a press conference.
Switzerland is to release inflation data.
The Bank of England is to announce its latest monetary policy decision and publish the meeting minutes.
Canada is to report on new house price inflation.
The U.S. is to release reports on initial jobless claims and producer prices.
Friday, May 12
Finance ministers and central bankers from the G7 nations are to meet in Italy.
The U.S. is to round up the week with a string of reports including a look at consumer prices, retail sales and consumer sentiment.