The U.S. dollar gained on strong retail sales data. The euro was dented by weak manufacturing data in the region.
U.S. retail sales increased by the most in 1-1/2 years in March. Households boosted purchases of motor vehicles and a range of other goods. The latest is an indication that economic growth picked up in the first quarter after a false start.
Other data showed that the number of Americans filing applications for unemployment benefits fell to more than a 49-1/2-year low last week.
The picture was less bullish in the Eurozone as data showed that activity in Germany’s manufacturing sector shrank for a fourth straight month in April. A similar survey from France also painted a bleak picture.
Investors have been looking for signs that global growth is stabilizing after a slowdown. A week ago, European Central Bank President raised the prospect of more support for the struggling euro zone economy if its slowdown persists.
START TRADINGForex – Dollar gained on strong retail sales data
The dollar index against a basket of six major currencies was nearly flat at 97.051 after dipping 0.05 percent yesterday.
The greenback inched down 0.1% to 111.955 yen after briefly touching a four-month peak of 112.17 amid a bounce in U.S. Treasury yields to a one-month high.
The Sterling fell as the dollar’s rally gathered momentum, with strong British retail sales data doing little to shake the currency following a six-month extension to Brexit. The currency is now at its least volatile in years as investors await a breakthrough in Britain’s EU divorce process.
At 1305 GMT sterling was down 0.3% against the dollar at $1.3003 after earlier dipping to $1.2993, a weekly low. Against the euro the pound rose 0.2% to 86.445 pence. The euro was down across the board after disappointing economic survey data in the region.
The Canadian dollar stood at C$1.3351 per dollar, having pulled back from a one-month high of C$1.3275 brushed on Wednesday.
The Australian dollar was flat at $0.7179.
The euro fell to a one-week low on Thursday after weak manufacturing surveys in Europe raised concerns about an economy struggling to gain traction before the long Easter weekend. The single currency was up as much as 0.1% before the data but fell 0.4% after the data releases.
The Gold inched up on Thursday. It recovered from near 4-month lows it hit early in the session after data showing euro zone businesses were under pressure reignited concerns about global growth. Spot gold was up 0.1% at $1,274.44 per ounce, having fallen to its lowest since Dec. 27 earlier in the session. Gold, as a non-yielding asset, tends to suffer when central banks raise interest rates.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money