Investing.com - The euro rose to fresh two-and-a-half year highs
against the dollar on Thursday as diminished expectations for more
easing by the European Central Bank bolstered demand for the common
EUR/USD hit 1.3966, the highest since October 31 2011, and was
last up 0.35% to 1.3951.
The pair was likely to find support at 1.3895, the session low
and resistance at 1.4000.
The common currency continued to gain momentum following last
week's decision by the ECB to refrain from implementing policy
measures to shore up growth in the euro area, despite forecasting
low inflation for some years to come.
Speaking Wednesday, German Finance Minister Wolfgang Schauble
said interest rates in the euro zone are too low from a German
point of view. He also said he doesn't expect deflation to
materialize in the euro zone.
The euro moved higher against the yen, with EUR/JPY rising 0.21%
to 143.19, not far from last Friday's nine-week highs of
The euro's gains against the yen were held in check after
weaker-than-expected data from China pointed to a slowdown in the
world's second-largest economy at the start of the year.
Chinese industrial production rose 8.6% on a year-over-year
basis in the first two months of 2014, according to data released
on Thursday, missing market expectations for an increase of
Retail sales figures also undershot expectations, expanding
11.8% from the same period a year earlier.
China releases economic data for the first two months of the
year together, to even out distortions related to the Lunar New
The data comes just days after China released a report showing
that exports fell sharply in February. The weak data has fuelled
expectations that China's central bank could relax monetary policy
to help shore up growth.
Meanwhile, investors remained wary as tensions between Russia
and the West escalated ahead of Sunday's referendum in Ukraine's
Crimea region, now controlled by pro-Russian forces, on whether
citizens want to join Russia.
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