Daily Afternoon Report 08.05.2015

The euro remained lower against the U.S. dollar on Friday, after U.S. nonfarm payrolls data fuelled some optimism over the strength of the job market, lendin support to the greenback.
The pair was likely to find support at 1.1065, the low of May 5 and resistance at 1.1392, Thursday’s high.
The Department of Labor said that the U.S. economy added 223,000 jobs last month, below expectations for an increase of 224,000. The number of jobs added in March was revised to 85,000 from a previously estimated 126,000.
The report also showed that the U.S. unemployment rate ticked down to 5.4% in April from 5.5% the previous month, in line with expectations.
The data fuelled fresh concerns over the strength of the U.S. job market and added to reasons for investors to push back expectations on the timing of an initial rate hike by the Federal Reserve.
The euro was sharply lower against the pound, with EUR/GBP tumbling 1.50% to 0.7280.
Sterling found support after the Conservatives won more than half the seats in the Parliament on Thursday, outnumbering Labour and allowing David Cameron to end a coalition with the Liberal Democrats and govern alone.
Earlier Friday, industry data showed that U.K. house prices rose 1.6% last month, exceeding expectations for a 0.4% gain. March’s figure was revised to an increase of 0.6% from a previously estimated 0.4% rise.
Separately, the Office for National Statistics said that the U.K. trade deficit narrowed to £10.12 billion in March from £10.80 billion, whose figure was revised from a previously estimated deficit of £10.34 billion.
Analysts had expected the trade deficit to narrow to £9.80 billion in March.