Euro surges to 3-week high against dollar

Currencies Direct May 31st 2013 - < 1 minute read

The euro rose sharply against the dollar in Thursday
(May 31st) trading after US economic data fell short of

Weekly initial jobless claims unexpectedly rose last week and
pending home sales increased less than forecast, while the US
economy grew at a slower pace in the first quarter than initially

The data dampened speculation that the US Federal Reserve will
taper its bond purchase programme any time soon.

EUR/USD hit 1.3057, the pair’s highest since May 10th,
before the
exchange rate
consolidated around 1.3047,  a gain of 0.80
per cent.

The euro was also sent higher against the pound, with EUR/GBP
peaking at 0.8594 in Thursday’s session.

But sterling did find some strength against the dollar as the
weak economic data offered some support to GBP/USD, which rose
above the key 1.5200 mark for the first time in over a week.

Meanwhile, the dollar also plumbed a three-week low against
the yen at 100.46, though it recovered some losses in Friday’s
Asian session and is on course for its eighth consecutive month of
gains versus the Japanese currency.

Written by
Currencies Direct

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