The EUR to USD exchange rate remained trading above the 1.38 level against the US Dollar on Thursday despite the release of better-than-expected initial jobless claims data out of the US.
The Euro found support earlier in the session from the news that Greece had a successful return to the international financial markets by raising €3 billion in its first bond auction since 2010. A slight fall in unemployment added to the positive news out of the austerity ravaged nation.
The US Dollar meanwhile was unable to take advantage of jobless claims data which showed that the number of people filing for unemployment benefits fell to an almost seven year low.
According to the Washington based Labour Department, the number of claimants in the week ending on April 4th fell by 30,000 to a seasonally adjusted figure of 300,000. The figure was the lowest seen since May 2007.
Investors chose to shrug off the report however and instead continued to focus on the release of the Federal Reserve meeting minutes for March.
“The Dollar softened on the back of the minutes of the March FOMC, which push back against the perception that the Fed could be ready to hike rates as soon as the middle of next year,” said a senior foreign exchange strategist at Rabobank.
Traders were not impressed that the minutes seemed to suggest that interest rates in the world’s largest economy will not be increased as early as expected.
The Euro could volatility on Friday if Germany’s inflation data comes in below forecasts. Concerns over low inflation in the Eurozone are already high and a poor figure out of the region’s largest economy will put more pressure upon the European Central Bank to take action to counter the threat of deflation.
Current Euro Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3860 ,
Euro,,British Pound,0.8271 ,
Euro,,Australian Dollar,1.4731 ,