Investors took a cautious tack as two key organizations await meetings: the European Central Bank and the European Union. The monetary unit initially gained in value upon news from the U.S. Labor Department stating the unemployment rate in the U.S. dropped to 8.6 percent, its lowest since Spring 2009.
"We've priced in quite a bit of optimism in the last three or four days," currency research managing director Jens Nordvig with Nomura Holdings told Bloomberg. "I'm inclined to be very cautious in terms of risk positions going into next week's events. The measures were dealing with symptoms of the sovereign-debt crisis, but we still have to deal with the actual underlying problem."
The euro was on pace to achieve its first weekly gains against the dollar in one month, according to Bloomberg. The shared currency was propelled by Wednesday's accord between central banks that aimed to ease lending to lighten the load of nations ravaged by the sovereign debt scourge.
Reuters reports market scuttlebutt indicated Spain's debt rating was likely to be downgraded, which also pulled down the value of the euro.
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