Euro (EUR) Exchange Rate: ‘Single Currency’ Leaps to Two-Year High against the US Dollar
The Euro to US Dollar exchange rate surged to its highest level in two-years on Thursday as investors took a wait and see approach to the ‘Greenback’ ahead of the release of anticipated retail sales and jobless claims data out of the USA and as yesterdays comments by European Central Bank policy-makers bolstered optimism in the Eurozone.
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Yesterday saw a number of policy-makers say that the ECB does not see any threat of deflation in the region and that if it does occur then the Bank has measures in place to counter it.
The comments sent the Euro soaring and saw the single currency reach its best level of 2014 against the British Pound.
The Euro received further support on Thursday due to the release of positive inflation data out of France and a positive retail sales report out of Spain.
According to the National Statistics Institute Spanish retail sales climbed by 2.4% in January on a month by month basis and firmed by 0.5% year on year. Both figures beat economist forecasts. The rise was the first recorded in two months. Retail sales in the nation had been falling every month for three years until September when they inched higher due to signs of a tentative economic recovery.
France’s EU measure of inflation accelerated at a slightly faster-than-expected pace in February, figures from the statistical office INSEE revealed Thursday.The harmonized index of consumer prices, or HICP, increased by 1.1% year-on-year, following a 0.8% increase in January.
Economists had expected an inflation figure of 1%.
The Euro to US Dollar exchange rate could push higher later in the session if the anticipated US data disappoints.