The EUR edged higher against the Dollar on Friday, correcting after sharp falls during the late hours of the previous session in the wake of bleak U.S. jobs numbers which dampened hopes for a global economic recovery. Trade was quiet, however, with U.S. markets closed for a public holiday.
The EUR reacted little to the weaker than forecasted Euro-Zone retail sales data and a slight upward revision to the purchasing managers' survey for services in the region. Despite the EUR recovery, the common currency stayed well below a 1-month high above $1.4200 hit earlier in the week, with some analysts saying any gains are likely to be limited due to concerns about the sustainability of any economic improvement.
The European currency has declined for a 3rd day versus the Yen, the longest stretch in 7 weeks. The EUR fell after Russian President Dmitry Medvedev said the world is too reliant on the Euro-Zone currency, damping the appeal of European assets. Also, Germany's IKB Deutsche Industriebank AG said it lost 580 million EUR ($810 million) in the fiscal year ending March 31st as the value of its investments fell. The news is a reminder there are still financial problems in Europe that imply the region may not be so safe, and that may be negative for the EUR, analysts have said.