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The euro traded jumped against the U.S. dollar due to the growth of inflation in the Eurozone and the slowdown of the U.S. economy. The inflation in the Eurozone in April was better than in the previous month. The harmonised consumer price index climbed 0.7% in April (March: 0.5%). Analysts expected a rise of 0.8%.
The U.S. dollar dropped against the most major currencies. The U.S. dollar was support by the better-than-expected non-farm private employment. According to ADP Employment Report, the U.S. non-farm private employment rose by 220,000 in April. Analysts forecasted the increase of 210,000. March’s figure was revised up to 209,000 from 191,000. It is the strongest private-sector jobs growth in five months. These figures show a strengthening of labour market that was affected by the cold winter. But the growth of the U.S. economy slowed in the first quarter. U.S. Gross domestic product (GDP) increased 0.1% in the first quarter. This slow growth is a result of a cold winter in the USA. The U.S. economy climbed 2.6% in the previous quarter. Analysts forecasted the increase of 1.1%.
The British pound climbed to a four-year high against the U.S. dollar after the publication of a slowdown of the U.S. economy while U.K. consumer confidence increased.
The Japanese yen was up against the U.S. dollar. The yen was supported by the decision of the Bank of Japan to refrain from implementing additional quantitative stimulus measures. The Bank of Japan decided to keep monetary policy steady as expected. The target of an annual increase in the monetary base is between 60 trillion yen and 70 trillion yen. A stagnation of U.S. economic growth also supported Japan’s currency.
The Canadian dollar traded mixed against the
U.S. dollar. Canadian GDP declined to 0.2% in February from 0.5% in January.
Analysts forecasted a rise of 0.2%.
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