FRANKFURT (dpa-AFX) – The euro experienced significant price fluctuations on Thursday based on economic data from the Eurozone and the USA responded. In the afternoon, the common currency was trading at 1.0814 US dollars, almost at the same level as in the early morning. The price only temporarily rose to a daily high of $1.0888. The European Central Bank (ECB) set the reference rate at 1.0844 (Wednesday: 1.0809) dollars. The dollar therefore cost 0.9221 (0.9251) euros.
Advertising
Trade EUR/USD and other currencies with leverage via CFD (long and short)
Trade currency pairs like EUR/USD with leverage at Plus500 and participate in rising and falling prices.
Plus500: Please note the Hints5 about this advertisement.
In the morning, sentiment data from the Eurozone economy temporarily boosted the euro. The price rose by more than half a cent after it was announced that the mood of purchasing managers had unexpectedly improved significantly. The corresponding index from S&P Global rose by 1.0 points to 48.9 points in February, its highest level in eight months.
In the afternoon, however, unexpectedly strong US economic data boosted the dollar. In return, the euro came under pressure and gave up its early gains. The number of weekly initial jobless claims fell unexpectedly, indicating that the labor market remains robust.
When making monetary policy decisions, the US Federal Reserve Bank not only takes price developments but also the situation on the labor market into account. It is combating inflation with high interest rates, but has recently left key interest rates unchanged. After inflation has recently fallen again, interest rate cuts are expected over the course of the year. In the afternoon, however, the Vice President of the US Federal Reserve, Philip Jefferson, warned against easing the restrictions too much monetary policy. One must always keep in mind the risk of too strong measures in response to an improvement in inflation developments, he said.
For other important currencies, the ECB set the reference rates for one euro at 0.85625 (0.85619) British pounds, 163.12 (162.12) Japanese yen and 0.9535 (0.9510) Swiss francs. A troy ounce of gold was trading at $2,023 in London in the afternoon. That was about $2 less than the day before./jkr/jsl/he