Euro Softens On Data
ICM Brokers | Oct 31, 2014 02:23AM ET
EUR/USD
The euro softened against the dollar on Thursday after data revealed the U.S. economy grew more in the third quarter than markets were expecting, data that published a day after the Federal Reserve said it was closing its monthly bond-buying program. Meanwhile in the euro zone, preliminary data on Thursday revealed that German inflation was unchanged at 0.7% in October from a month earlier, the lowest level since May. Separately, the number of people unemployed in Germany fell by 22,000 this month, compared to expectations for a gain of 5,000. The country’s unemployment rate was unchanged at 6.7%.
GBP/USD
The pound is losing ground against the dollar as traders bet the Bank of England is likely to trail behind the Federal Reserve in raising interest rates. Sterling dropped the most in two weeks yesterday after the Federal Reserve ended its bond-purchase stimulus program, citing an improving U.S. labor market. U.K. consumer confidence weakened this month as Britons’ outlook for the economy deteriorated. U.K. economic growth cooled in the third quarter and threats to the recovery from the euro-area slump have mounted since then.
USD/JPY
The dollar firmed against the yen on Thursday after upbeat U.S. growth data coupled with a Federal Reserve decision to close its bond-buying program sparked fresh expectations that rate hikes are not far on the horizon. The yen remained weaker against the dollar after consumer prices and unemployment met expectations, thought it recovered from early Friday lows as investors looked ahead to a central bank statement on monetary policy.
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