Euro higher ahead of U.S. report; Pound almost unchanged after U.K. data

On Friday the euro climbed versus the greenback, with investors eyeing U.S. nonfarm payrolls report due later in the day.

The pound was slightly lower after data on U.K. trade deficit.

EUR/USD hit 1.0950 during European afternoon trade, the pair's highest since August 4; the pair subsequently consolidated at 1.0937, adding 0.12%.

Investors await the release of Friday's job report by the Labor Department's Bureau of Labor Statistics for further indications on the timing of the Federal Reserve's first interest rate hike since 2006.

Projections are for 223,000 new jobs to have been added, although yesterday Goldman Sachs upped its own estimates from 215,000 to 225,000.

Analysts consider that if the numbers come in at 215K to 220K, there would be more speculation concerning a Federal Reserve rate bump at its September meeting. If the numbers come in much below 215K, the rate increase would be seen as more likely in December. Analysts at Kitco News say they still feel it’s going to be December (if this year at all) regardless of any labor data timing.

Last week, analysts had expected initial jobless claims to rise by 6,000 to 273,000.

The euro was steady against the pound, with EUR/GBP at 0.7043.

GBP/USD was almost unchanged at 1.5511.

The British currency shrugged off the report by the Office for National Statistics on Friday showing that the U.K. trade deficit widened to £9.18 billion in June from £8.42 billion in May, whose figure was revised from a previously estimated deficit of £8.00 billion. Economists had expected the trade deficit to widen to £9.30 billion in June.