Dollar Extends Gains vs. Euro Supported by Economic Recovery
The U.S. extended its gains against the euro for the fifth consecutive day after the reports showed that the retail sales and the consumer confidence in the U.S. increased while the debt troubles in the European Union cause concern about the future of the common European currency.
The retail sales in the U.S. increased by 0.4 percent, more than expected, following the March growth of 2.1 percent. According to the estimates of the University of Michigan the consumer sentiment also improved. The reports show that the U.S. consumers are able and willing to spend their moneys, supporting the optimistic outlook for the economic recovery in the U.S. and the dollar’s growth.
At the same time the euro faces the considerable difficulties. While the rumors about the President of France threatening to leave the euro were dismissed, the talks emerged about the possibility of the ejection from the euro for the countries with the weak economies so they wouldn’t pull the whole EU economy down with them. Some economists say that parity between the dollar and the euro by the end of this year doesn’t sound unrealistic.
EUR/USD traded near 1.2383 today as of 19:44 GMT after it opened at 1.2534. GBP/USD traded at about 1.4541 down from its opening rate of 1.4612.
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Earlier News About the US Dollar:
- Dollar Rises Against Euro as Debt Concerns Return (2010-05-11)
- U.S. Dollar Rally Was Halted by Week's End (2010-05-08)
- Euro Rises vs. Dollar, Yet Rebound Considered Short-Term (2010-05-07)
- Greenback Advances Against Loonie on Greece's Woes (2010-05-05)
- Dollar Rises as U.S. Economy Improves (2010-05-03)