The euro extended gains against the dollar on Thursday, after reports showed that US economy growth in first quarter left unrevised and jobless claims rose sharply last week.
EUR/USD hit a fresh four-day of 1.4206 during early New York trading.
The US Commerce Department report on Thursday showed that US GDP grew at an unrevised rate of 1.8 percent in the first quarter this year, compared with market expectations of 2.1 percent growth.
Consumer spending, which occupies more than two-thirds of US GDP, increased at the rate 2.2 percent in the quarter against the expectations of 2.7 percent increase.
“We expect that consumer spending will stay persistently soft until the decline in oil prices feeds into gasoline prices. While some of the weakness in construction during Q1 can be attributed to the weather, and construction may show a marginal pick-up in the Q2 number released at the end of July, this sector undoubtedly remains weak,” said a note from Standard Chartered.
Separately, the Labor Department data showed that the number of people seeking jobless benefits unexpectedly rose by 10,000 to 424,000 last week, while the markets had expected the number to fall to 400,000.
The single was also higher against the British pound, with EUR/GBP gaining 0.17 percent to hit 0.8670.
A report on Wednesday showed that UK economy grew at an unrevised rate of 1.8 percent in the first quarter on annual basis. Household spending saw its sharpest decline in nearly two years.
“The outlook for Q2 GDP growth is challenging, as the main drivers behind Q1 growth are expected to wane. Exports will probably moderate on slowing global trade, while government cuts (which began in April) will probably reduce government consumption (which contributed 0.2ppt to Q1 growth). More importantly, private consumption looks set to remain feeble, on still-low consumer confidence and ongoing deleveraging,” said Standard Chartered.
The euro was also supported by reports of China's interest in buying bailout bonds for Portugal that will be issued in mid-June, but concerns remained over debt restructuring of Greece.
“The continuing soap opera that is the Greek Crisis looks like it will be with us for a little while yet. However, market fears of restructuring and contagion appear overdone. The ECB has very clearly indicated that the suggested re-profiling of Greek debt could only be conducted over its dead body. We therefore reiterate our view that a new bailout programme to address Greece's financing needs in 2012 and 2013 continues to be the most likely outcome,” said Societe Generali in a note.