Euro gains vs. USD after JPMorgan results

The euro strengthened against the US dollar yesterday by 0.39 cents (0.28%) to close the day at $1.4146.

• The single currency strengthened against the greenback yesterday as global equity markets continued their recent rally, boosting risk appetite. The Dow eventually finished the day up 95.61.
  
• Surprisingly positive results from investment banking giant JPMorgan Chase was the primary driver behind these gains, following stellar quarterly profits announced by Intel and Goldman Sachs earlier this week. JPMorgan Chase unveiled bumper revenues of $27.7 billion in the three months to the end of June, with earnings rising $2.7 billion in the quarter.
  
• In addition, better-than-expected US unemployment claims data, which came in ahead of forecast at 522k this month, further boosted the single currency.
  
• However, US TIC Long-Term Purchases data released mid-afternoon capped the euro’s gains in late trading as investors worried the global economic recovery may still be some way off. This month’s reading of -$19.8 billion was well below the £16.7 billion forecast by analysts.
  
• There are no major announcements due in the eurozone today, whilst in the US Building Permits and Housing Starts data is out at 13.30 BST.