RTTNews - The euro turned higher against the dollar on Thursday in New York as European stocks recovered some recent losses, sparking some risk appetite. The single currency stabilized against the yen and turned lower against the dollar.
The common currency had reached multi-week lows against the lower-yielding dollar and yen in yesterday's trading as global stocks fell, creating risk aversion. The euro had bounced back in late-day trading against the yen and did the same this morning versus the greenback.
Investors chewed on several key economic reports from the Eurozone, including data revealing German exports showed a slight increase in May, strengthening hopes for a recovery in the recession-hit economy.
Meanwhile, Jose Manuel Barroso has been formally nominated by European Union member-states as president of the European Commission for a second term.
The euro climbed against the dollar and moved to within a single tick of a weekly high of 1.4049. The common currency had hit a two-week low of 1.3832 yesterday.
In economic news, a Labor Department report showed that jobless claims fell to 565,000 from the previous week's revised figure of 617,000. Economists had been expecting a more modest decrease to 603,000 from the 614,000 originally reported for the previous week.
The European currency settled into a range against the Japanese yen, trading near 130.30. The euro had touched a its lowest level since May 17 yesterday when it hit 126.99.
Meanwhile, the euro dropped away from a monthly high against the British pound. The currencies moved at 0.8605 in early afternoon trading after the European currency reached as high as 0.8670 on Wednesday.
Thursday, the Bank of England retained its key interest rate at historic low as expected, and decided to continue with its asset purchase scheme totaling GBP 125 billion by utilizing central bank reserves.
In the Eurozone, Germany's Federal Statistical Office said in a report that the trade surplus increased to EUR 9.6 billion in May from EUR 9.4 billion in the previous month. A year earlier, the trade surplus was EUR 14.5 billion. Upon calendar and seasonal adjustment, the foreign trade surplus totaled EUR 10.3 billion.
According to provisional results of the Deutsche Bundesbank, the current account surplus amounted to EUR 3.7 billion in May, down from EUR 5.5 billion in April.
In addition, Germany's Federal Statistical Office confirmed its preliminary estimate for consumer price and harmonized inflation figures for the month of June. The consumer price index or CPI rose 0.1% year-on-year in June after posting zero growth in May. On a monthly basis, the CPI climbed 0.4% following a 0.1% fall.
Calendar and seasonally adjusted exports rose 0.3% month-on-month in May after a 5% fall in April and a 0.3% increase in March, data released by the Federal Statistical Office showed Thursday.
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