Economic news
The euro surged to a near 14-month high against the dollar in early trading hours on Thursday, after the Fed announced its decision to keep the current interest rate of 0.25%; the bond-buying program, worth $85 billion per month, is also set to continue.
The single currency reached a weekly high and was trading at 1.3583 at 6.00 am GMT on Thursday. The euro was supported further as better-than-expected data revealed that economic sentiment in the Eurozone is improving for a third month in a row. The actual figure of 89.2% ‘beat‘ the forecasted value (88.2%) indicates signs of recovery in the Euro zone, and that was enough to boost the euro even higher.
However, some analysts commented that it is too early to discuss Europe being out the crisis; yet some investors are already expressing optimism because of signs of recovery.
The euro’s early peak today was short-lived, though as the single currency sharply plummeted to 1.3546 before gaining some ground and settling at 1.3562 at the time of writing. The pressure came from the release of much weaker-than-expected German retail sales and lower French producer prices in December.
Looking further in the day, market volatility is expected to come from the release of US Jobless claims data and the German consumer price index.
Source: dfmarkets.co.uk
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