EUR/USD (a 4-hour chart)
According to the US Department of Labor, Non-Farm Payrolls grew by only 113 thousand in January after rising by 75 thousand a month earlier. That was more than one and a half times lower than it had been forecasted. The revision of numbers for the previous two months composed +34 thousand.
The US employment weak data for the second month in a row could be the result of the weather factors. Unemployment has been continuing to decline for the third consecutive month: in January it declined to 6.6% from 6.7% in December, while those changes were not expected. The unemployment Rates remain at the lowest levels since October 2008.
Pound responded to the weak report on industry production with decrease but then grew up and gained back almost all weekly losses. The Euro also fell in the middle of the day after the German constitutional court had referred a complaint about the ECB program on bonds purchase (OMT) legality to the European court. In the court's opinion the OMT program is beyond the mandate of the ECB's monetary policy and violates the monetary budget financing prohibition.
The Canadian dollar strengthened on Friday after the strong Employment Change report in Canada. Employment Rate rose in January with the fastest pace over 5 months (by 29.4 thousand), having exceeded the expectations by 20 thousand. The unemployment rate fell from 7.2% to 7%, which is also above the forecast – 7.1%. The reserve Bank of Australia in its quarterly statement on monetary policy, published on Friday, raised its forecasts for economic growth and inflation, which gave additional support to the Australian dollar.