Foreign exchange - Greenback regains floor, recovers from ECB drop

Investing.com – The regained some ground on Friday and recovered from the previous session’s more than 1% drop against other major currencies as markets digested the European Central Bank’s policy statement and investors eyed upcoming U.S. jobs data.

slid 0.47% to 1.0891, after rising to one-month highs of 1.0982 on Thursday.

The single curreny rallied after ECB President Mario Draghi said on Thursday that the pace of the quantitative easing program is to remain unchanged at €60 billion, disappointing expectations that the central bank would speed up its bond-buying scheme.

Draghi added that the bank will expand its bond-buying purchase scheme beyond the current cut-off point of September 2016 until the end of March 2017, or beyond if necessary.

The comments came after to -0.3% from -0.20%, in line with market expectations.

was left unchanged at a record-low 0.05%, in line with market expectations.

edged up 0.12% to trade at 122.72.

The dollar regained strength after Federal Reserve Chair Janet Yellen strongly indicated to Congress on Thursday that Fed policymakers are likely to vote to raise interest rates at its meeting in two weeks, barring any major shocks to the global economy.

“I currently judge that US economic growth is likely to be sufficient over the next year or two to result in further improvement in the labor market,” she said

The greenback had weakened after the Institute of Supply Management reported on Thursday that its fell to six-month low of 55.9 last month from 59.1 in October, missing forecasts for a reading of 58.0.

The data came shortly after the Department of Labor said in the week ending November 28 increased by 9,000 to 269,000 from the previous week’s total of 260,000. Analysts expected jobless claims to rise by 8,000 last week.

Market participants were eyeing a highly-anticipated report on U.S. employment due later in the day for further indications on the strength of the labor market.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.44% at 98.25, off Thursday’s one-month trough of 97.60

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Foreign exchange - Greenback regains floor, recovers from ECB drop