Euro Back Above $1.31 Amid Recovery Hopes
The euro jumped above $1.31 for the first time since early May Thursday, supported by further evidence that the European economic situation is better than feared this spring.
As the region’s credit crisis continued to ease, another round of encouraging economic data boosted the prospects for Eurozone growth.
German unemployment dropped for a thirteenth consecutive month to 7.6% in July, as improved economic conditions boosted the country’s labor market.
The continuing decline in unemployment triggered hopes that private consumption will soon contribute positively to the economic growth.
Hungary had a successful bond auction today, despite its recent squabbles with the International Monetary Fund.
The eurozone’s economic sentiment indicator rose to 101.3 in July from 99.0 in June, the European Commission said on Thursday. This was higher than analyst forecasts for a score of 99.1.
The euro rose to 1.3106 versus the dollar, breaking through resistance to its highest level since May 3. With the advance, the euro moved further from June’s 4-year low of 1.1805.
The US Labor Department released a report Thursday morning showing a modest decrease in initial jobless claims in the week ended July 24th. The report showed that jobless claims dropped to 457,000 from the previous week’s revised figure of 468,000.
The single currency was steady versus the yen, holding near Y113.50.
Versus the sterling, the euro rose to 0.8390 after data showed British house prices dropped in July for the first time since February.
