The European currency reversed its early gains against the dollar on Thursday, slipping into negative territory with traders citing profit taking following the single currency's gains earlier in the day. In volatile trading, the EUR fell 0.2% to $1.3224. Earlier, the currency fell to an intraday low of $1.3190.
Unemployment in the Euro-Zone rose to 8.9% in March, slightly higher than in February, the statistics agency Eurostat said. A rise in unemployment data from an upwardly revised 8.7% in February underlined the view that the European economy remains weak. Other data showed that Euro-Zone inflation remained at a record low of 0.6% year-on-year in April. The European Central Bank, which meets on Interest Rates on May 7, wants to keep inflation just below 2% and is expected to cut its refinancing rate to 1.0%.
The British pound remained flat against the dollar at $1.4783. British consumer confidence posted its third monthly rise in April, continuing a slow rebound from an all-time low notched last summer, market research firm GfK NOP reported Thursday.