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Forex - Euro jumps 1% against weaker dollar after U.S. data

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Investing.com -

Investing.com - The euro rallied against the broadly weaker dollar on Tuesday, rebounding from one-month lows after U.S. data on retail sales fell short of market expectations.

EUR/USD was up 1.06% to 1.0678, after falling as low as 1.0532 earlier.

The Commerce Department reported that U.S. retail sales jumped 0.9% in March, the largest gain in over a year. But this was still short of the consensus forecast for a 1.0% increase.

The data dampened expectations for a midyear rate hike by the Federal Reserve, sending the greenback lower against a basket of currencies.

In a separate report the Commerce Department said U.S. producer prices rose 0.2% in March, the first gain in five months and in line with forecasts.

On a year-over-year basis, producer prices were down 0.8% in March, also in line with forecasts.

The euro was boosted after the International Monetary Fund raised its growth forecast for the euro zone in 2015 to 1.5%, up from 1.2% previously. The fund believes that the weaker euro and the fall in oil prices will bolster growth.

The IMF left its forecast for global growth this year unchanged at 3.5%, but warned that the recovery is "moderate and uneven".

Elsewhere, the dollar was also weaker against the yen and the pound, with USD/JPY down 0.78% to 119.18, the lowest since April 6. GBP/USD added 0.78% to trade at 1.4789.

Sterling had weakened earlier Tuesday after data showing that the U.K. avoided slipping into negative inflation in March, but consumer prices remained unchanged at a record low zero last month due to cheaper food and energy costs.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 1.16% to 98.6.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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