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Euro off two-month lows as sterling climbs

Currencies Direct May 16th 2014 - < 1 minute read

The euro was steady against the dollar on Friday (May 16th)
after rising more than half a cent off Thursday’s low, despite weak
economic data that fuelled further expectations the European
Central Bank (ECB) will take strong policy action to tackle low
inflation.

EUR/USD was higher at 1.3715 after plumbing a two-and-half month
trough earlier in the week of 1.3648.

Pressure was on the single currency as
data
showed the 18-member eurozone economy grew by just 0.2 per
cent in the first quarter.

Another report showed the bloc’s rate of inflation was unchanged
at 0.7 per cent in April, still within the ‘danger zone’ level
below one per cent.

Meanwhile, the pound was also higher against the dollar, with
GBP/USD rising 0.2 per cent to 1.6795.

Sterling had fallen earlier in the week after the Bank of
England suggested it is in no rush to hike UK interest rates,
confounding market expectations that had driven the
pound exchange rate
to a five-year high this month.

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Written by
Currencies Direct

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