The USD declined against the EUR Thursday as market sentiments improved and U.S stocks showed a 2.5% gain. Growth tied currencies benefited the most from the improved sentiment Thursday as investors shifted away from the safety of the USD and JPY with the Australian Dollar shooting up 3.5% and the Canadian Dollar soaring nearly 2% against the greenback.
U.S growth data released Thursday showed that the number of U.S. workers filing new claims for unemployment benefits fell last week, but the drop was lower than expected. The GDP data also came below expectations, however, it still showed that the U.S economy expanded last quarter. Despite falling short of expectations, the data still indicated the U.S. is on the path toward a sustainable recovery and is unlikely be hurt by Euro-Zone debt issues.