Euro Gains On Dollar, At All-Time Low Versus Swiss Franc
The euro continued to rebound versus the dollar on Friday, but eased to a fresh record low against the Swiss franc as trader weighed a flurry of economic news from around the globe.
Another round of lackluster readings from the U.S. has renewed expectations that the Federal Reserve will keep interest rates on hold near zero in 2011.
This has taken some of the pressure off of the euro, which was in retreat last week amid concerns that Greece will need to restructure its sovereign debt.
With the Greek situation unresolved, the euro has been unable to rally against the Swiss franc or sterling.
The euro rose to $1.43 against the dollar after official data showed high prices at the pump had Americans keeping a tight grip on their purse strings.
Consumer spending rose by 0.4 percent in April following a 0.5 percent increase in March, according to the Commerce Department.
Yesterday, it was revealed that U.S. GDP increased by 1.8 percent in the first quarter, unchanged from the advance estimate provided a month ago. Economists had been expecting the pace of GDP growth to be upwardly revised to 2.1 percent.
The euro dropped to record low CHF 1.2163 versus the Swiss franc amid stronger than forecast Swiss KOF figures.
Modest early gains took the euro to GBP 0.8680 versus the sterling, away from a 2-month low of 0.8610.
The euro was stable versus the yen, holding near Y115.50.
Euro zone economic sentiment deteriorated in May, a survey from the European Commission showed Friday.
The economic sentiment indicator fell to 105.5 from 106.1 in April. It stayed slightly below the expected level of 105.7.
On the other hand, a barometer of consumer confidence in the United Kingdom rose at its fastest pace in 17 years in May. However, it remains below levels recorded a year ago.
