Euro up against dollar, gains pared ahead ECB interest rate decision
Currencies Direct May 2nd 2013 - < 1 minute read
The euro climbed to a two-month high against the
dollar on Wednesday (May 1st) after the US Federal Reserve
said it will continue with the current scale of asset purchases and
may even expand the programme.
Officials noted steady improvement in the world’s largest
economy, but stated that the unemployment rate remains too high for
any change in tack.
“Fiscal policy is restraining economic growth,” the central
bank’s Federal Open Market Committee said in its policy
statement.
“The committee is prepared to increase or reduce the pace of its
purchases to maintain appropriate policy”
EUR/USD rose to 1.3243 at one stage, but gains were pared back
on Thursday morning ahead of an expected cut in eurozone interest
rates by the European Central Bank.
The
dollars to pounds exchange rate saw similar movement, with the
pound pulling back from Wednesday’s high of 1.5596, the pair’s
strongest level since February 13th. By the end of the European
trading session it was still trading up 0.20 per cent at 1.5563
Sterling had strengthen against the greenback after data
showed contraction in the UK manufacturing sector slowed in
April.
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Currencies Direct