The Euro exchange rate continued to trade strongly against the US Dollar (USD) and other major peers on Thursday as the single currency continued to be buoyed by declining expectations that the European Central Bank will implement more easing measures.
The common currency continued to gain momentum following last week’s decision by the ECB to refrain from implementing policy measures to shore up growth in the euro area, despite forecasting low inflation for some years to come. Comments made by the German Finance Minister Wolfgang Schauble added to those of ECB policy makers that deflation is not expected to become an issue in the Eurozone. He also suggested that interest rates are too low, hinting at a possible rise away from the current record low in the future.
Further gains were tempered due to the release of positive retail sales and jobless claims data out of the United States.
According to the US Commerce Department, retails sales rose for the first time in three months in February. Sales rose by 0.3%. Economists had expected sales to rise by 0.2%. Also adding some support to the US Dollar was the release of a separate report by the Washington based Labour Department.
It reported that the number of US citizens claiming unemployment benefits fell unexpectedly last week and dropped to the lowest figure since November. The number of claimants fell by 9,000 to 315,000 in the week ending on March 8th.
The Euro is forecast to end the week strongly against the US Dollar.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3954 ,
Euro,,British Pound,0.8351 ,
Euro,,Australian Dollar,1.5411 ,
Euro,,Canadian Dollar,1.5453 ,