(MENAFN– ecpulse)
The Euro traded marginally higher Thursday after data showed Eurozone economic mood rose to a 13-month high in June, while a separate report showed labor market conditions in Germany advanced in June, offering positive support to the recovery.
Confidence in the Eurozone recieved further upticks Thursday following jobs data from the euro area`s largest economy. Reports showed labor market conditions in Germany advanced in June, where unemployment Change dropped unexpectedly by 12 thousand, while jobless rate held at 6.8 percent.
European confidence started to pick up in the single currency block in June, with most indicators generally improved. Economic confidence index for the euro area rose to 91.3 from a revised 89.5, analysts expected a rise to 90.4, while consumer confidence index remained unchanged at -18.8 as expected.
Early Thursday, Finance ministers agreed on who will have to pay first when it comes to future bank bailouts, where EU finance ministers agreed on a deal about future bank bailouts and who is liable to pay for them, where shareholders, bondholders and depositors with more than 100,000 euros could end up with the burden of saving failing banks, According to EU banking rules.
However, differing views on coping with youth unemployment are set to divide European Union leaders at a two-day summit in Brussels.
The EURUSD pair is currently hovering around 1.3037, after recording a high of 1.3042, and a low of 1.3004. The trading range for today is among the key support at 1.2870 and key resistance at 1.3170.
In contrast, dollar slipped against major counterparts on Thursday as a report from the U.S. showed annualized Gross Domestic Product for the first quarter was unexpectedly revised lower, casting a shadow over the Federal Reserve`s fairly upbeat assessment of the economy last week.
The U.S. GDP figure, the broadest measure of all goods and services produced in the economy, grew at an annual 1.8 percent annual rate between January and March, revised lower from a prior estimate of 2.4 percent.
Investors will closely watch U.S. data due later in the day for more clues on the Federal Reserve next step. Consumer spending in the U.S. probably rose at the fastest pace in three months and jobless claims probably declined.
Dollar could rebound if U.S. weekly jobless claims data due later beats forecasts. The Federal Reserve has said jobs data will be a key to any decision to slow its stimulus.
The USDIX dollar index is currently trading around 83.12 after opening at 83.16, having so far hit a high of 83.23 and a low of 83.03.
As for the royal sterling, the pound sank against the dollar in European trading hours, after final numbers from national office for statistics showed Britain’s annualized GDP was downwardly revised a rate of 0.3 percent, trailing analysts forecast of GDP to remain unchanged at 0.6 percent. Quarterly GDP reading was unrevised at 0.3 percent growth.
Pound extended losses on Thursday, falling for the thirds consecutive day and pushing the GBPUSD lower to trade around $1.5295, while recording the lowest level of $1.5263 and highest of $1.5345.
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