The euro rose sharply against the dollar after disappointing US employment data on Friday boosted expectations that the Federal Reserve will inch closer to tapering its bond buying program this year. Payrolls increased a dismal 74 thousand last month, the smallest increase since January 2011 , the US Labor Department said on Friday. The consensus was extremely disappointed by the weak number, fueling a broad selloff in the US currency, after it was trading higher versus a six-currency basket, as the NFP number trailed analysts` average forecast, and even less than most pessimistic expectations. The unemployment rate fell to 6.7% from 7.0% in November, also trailing median forecast calling for no change. The NFP drama took its toll on the US currency, but boosted higher-yielding assets instead. - The euro jumped as high as $1.3686 from $1.3605 . - The sterling reversed earlier losses hitting an intraday a level not seen in almost a week at $1.6515 from $1.6379 . - The dollar slumped against the yen posting a fresh two-week low of 103.81 from 105.29. On the other hand, global stocks fluctuated following the jobs release, but most notably; gold posted its biggest intraday gain in over three weeks, with price rising as high as $1,247.33 from $1,227.71 an ounce. Here is quick snapshot of the NFP aftermath and how benchmarks reacted: (data as of 15:44 GMT ) - EUR/USD was at 1.3674, up by 0.49% - GBP/USD was at 1.6484, up by 0.04% - USD/JPY was at 104.10, down by 0.68% - Spot Gold was at $1,244.30 an ounce, up by 1.26% - WTI crude oil was at $92.35 , up by 0.05% - Dow Jones was at 16,346, down by 0.26% In December, the Fed announced a cut of $10 billion in its monthly bond purchases to $75 billion , believing a recovery was taking hold in the labor market. But today`s data has obviously overshadowed what policymakers have seen when they took that historic decision. Market will volatility could be evident in the coming day as investors continue to weigh data showing a slowdown in jobs growth for clues on the pace of Fed stimulus tapering, with eyes of course shifting to the Fed, which next meets Jan. 28-29 .
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