FOREX-Euro slips to 5-week low vs dollar after jobs data

* Euro falls to 5-week low vs dollar, breaks $1.2300
* Euro near record lows vs Australian, NZ dollars
* Weak U.S. jobs reading hurts risk appetite

NEW YORK, July 6 (Reuters) - The euro slipped to a five-week
low against the dollar on Friday after a report showed U.S.
employers hired at a dismal pace in June, stoking strong risk
aversion and a flight to safe havens.
The report appeared to fuel concerns that Europe's debt
crisis is shifting the U.S. economy into low gear.

While the dollar was the safer bet against the euro,
investors flocked to the yen as an even safer bet than the U.S.
dollar as the data raised pressure on the Federal Reserve to do
more to boost the economy.
The weak U.S. jobs data came a day after the European
Central Bank cut interest rates, further dampening the euro's
appeal, and China and the Bank of England announced more
monetary easing.
"Obviously it's a disappointing number again," said John
Doyle, senior strategist at Tempus Consulting in Washington.
"This might add to the general risk-off sentiment that we've
seen throughout the week."
"You might expect the yen to gain against the U.S. dollar,
as you're seeing now, as it will be the preferred safe-haven
currency for today," Doyle said.
The euro was down 0.7 percent at $1.2303, after
falling to a five-week low of $1.2294 and closer towards the
two-year low of $1.2286 struck on June 1.
The U.S. Labor Department said on Friday nonfarm payrolls
expanded by just 80,000 jobs in June, falling short of forecasts
though a tad higher than a revised May reading of 77,000. Job
creation during the month wasn't enough to bring down the
country's lofty 8.2 percent unemployment rate.
Against the yen, the dollar fell 0.4 percent to 79.58 yen
, off an earlier three-day low, after reaching a two-week
high on Thursday.
The euro has lost 2.8 percent against the dollar this week,
and at current prices is on track for its worst weekly
performance since the week ended Sept. 11. The dollar is down
0.2 percent against the yen for the week at current prices,
adding to last week's 0.8 percent decline.
"Politically and economically, it is not the environment for
the euro to rally ... In a week or a month's time, it can easily
get back down towards below $1.2280 and maybe even head towards
$1.20," Kathleen Brooks, research director at FOREX.com said in
London.

MORE EURO WEAKNESS
The ECB on Thursday cut its main interest rate to 0.75
percent and the deposit rate to zero, reducing the incentive to
hold a currency already beset by debt problems.
Many analysts say the ECB's easing this week will lead the
euro to take on the role of a funding currency - used to finance
investments in higher-yielding assets - meaning it could
struggle to make ground even when share prices rise.
"A weaker euro has to be one of the least costly solutions
to the euro zone crisis," said Chris Turner, head of ING head
currency strategy in London, adding he expected the euro to see
an "orderly decline" towards $1.15 by year-end.
A Reuters poll conducted after the ECB rate cut showed
economists expect more measures from the central bank in the
coming months, possibly including another round of cheap,
long-term loans for banks.
The euro also stayed near record lows hit on Thursday versus
the Australian and New Zealand dollars .
Against the Swiss franc, the euro was at 1.2009 francs
, continuing to hover just above the 1.20 floor for the
euro/Swiss franc rate imposed by the Swiss National Bank last
year in an attempt to keep its economy competitive.
The dollar rose to a fresh one-month high against the Swiss
franc after the U.S. jobs data.
Many in the market believe the SNB will struggle to maintain
the cap, with data on Friday showing the SNB's foreign exchange
reserves jumped 19 percent in June as the euro zone crisis
forced it to intervene heavily.
The higher-yielding Australian dollar was down 0.9 percent
against the U.S. dollar at $1.0194, off a two-month high
hit on Thursday following a surprise interest rate cut in China,
Australia's single largest export market.