The CurrencyShares Euro Trust (NYSEArca: FXE) clawed into positive territory in volatile trading Friday as the March nonfarm payrolls report and a speech from New York Fed President William Dudley dominated the action.

After opening lower following a strong U.S. jobs report, the euro ETF rallied near $142 a share, a level that acted as resistance in November 2010. The ETF topped out at $142.28 in November.

The Fed’s Dudley said the central bank is still committed to keeping monetary policy loose and downplayed inflation fears, Dow Jones Newswires reported.

The greenback fell after Dudley’s dovish comments.

The euro has been strengthening lately against the dollar as ECB President Jean-Claude Trichet has been signaling interest rates need to rise in Europe.

The PowerShares DB US Dollar Bullish Fund (NYSEArca: UUP) was trading below $22 a share in afternoon dealings Friday, close to support.

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.