The dollar stabilized on Friday against the euro after the publication of monthly statistics on US employment, while the greenback has fallen sharply recently.

Around 7:00 p.m. GMT, the dollar remained stable against the euro (-0.06% at 1.2137 dollars for one euro), and rose against the yen by 0.26%, at 104.11 yen for one dollar.

Since the US election in early November and the series of announcements on vaccines against Covid-19, the dollar, a safe haven, has suffered from the market's risk appetite and is sinking to its lowest levels for the year.

During Friday's session, the dollar even sank to its lowest since April 2018 against the euro, at $1.2178, and against other major currencies, according to the dollar index.

Analysts were particularly scrutinizing the negotiations between Republicans and Democrats in Washington on an economic recovery plan.

“The prospect of a fiscal stimulus package in the United States raises the outlook for inflation. As the US central bank (the Fed) has announced that it will accept higher inflation in the short term without tightening its monetary policy, this outlook is weighing on the dollar," said You-Na Park-Heger, an analyst at Commerzbank.

The US economy created more than half as many jobs in November as in October, a sign of slowing growth in the United States due to the Covid-19 pandemic, the Labor Department said on Friday.

“This unexciting employment report has nevertheless benefited the stock markets, which saw it as a reason for American elected officials to accept a stimulus plan,” explained Neil Wilson, analyst at Markets.com.

But the dollar erased some of its losses at the end of the European session.

"The pound and the euro will perhaps calm down a bit as long as the big events that are happening in Europe next week have not passed," said Edward Moya, analyst at Oanda.

Next week, negotiations will continue both on a post-Brexit trade agreement between the EU and the United Kingdom and on the veto of Warsaw and Budapest on the European budget.

The European Central Bank (ECB) will meet for the last time of the year, and should announce new measures to support the economy.

The British pound climbed around 2:25 p.m. GMT to its highest since May 2018 against the greenback at 1.3539 dollars for one pound before recovering ground.