Monday, May 5, 2014

Euro Advanced as Inflation Accelerated

The euro climbed against the dollar, reaching the strongest level in almost three weeks, amid speculation investors were reducing bets on the European Central Bank unveiling an asset-purchase plan to boost price growth.

The shared currency advanced as a report showed euro-region inflation accelerated. On the other hand, Fed officials led by Chair Janet Yellen repeated long-term inflation expectations remain stable. The Fed, in its unanimous decision, kept its forward guidance on borrowing costs, saying it will consider a “wide range of information” in deciding when to raise the benchmark federal funds rate, or the cost of overnight loans among banks. 

Household purchases, which account for almost 70% of the U.S. economy, grew 0.6% in March and the Institute for Supply Management’s manufacturing index rose to 54.3 last month from 53.7. U.S. Initial jobless claims rose by 14,000 to 344,000 during the week ended 26th of April, while was expected to fell by 9,000 to 320,000. And the U.S. unemployment rate declined to 6.3%, the lowest since 2009.

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