Single currency reverses losses against greenback

The single currency was a beneficiary of heavy selling of the dollar late yesterday, gaining 0.6% to close the day at 1.4341.

• The single currency was able to reverse a 3-day downward spiral against the greenback following a couple of positive economic figures in the US.
  
• US GDP emerged as -1.0% last month, better-than-forecast, which enabled the single currency to drive higher against the greenback.
  
• Investment into riskier assets was further encouraged following data that revealed a fall in US jobless claims this week.
  
• The single currency also found support from the major US stock markets which made minor gains, reaffirming the strength of global recovery.
  
• In trading so far this morning the euro has capped its gains with the trading rate for the pair remaining around yesterday’s closing price.
  
• There are no major economic announcements out in the eurozone today, whilst in the US there is a consumer spending figure released at 13:30BST which should give a good gauge of the current economic receovery.