Euro boosted by positive signs from the eurozone

Published: 2 Apr at 5 AM Tags: Euro, Dollar,

The US dollar has retreated a tad following signs that the growth of the economy in the US slowed through the first quarter of the year. In March factory activity was at its lowest level in close to two years and the number of jobs added by private employers the lowest in a year.

The greenback has fallen against most of its major rivals. In Asia the dollar has settled at 119.66 yen after dipping as low as 119.42 yen. The dollar had been enjoying levels above 120 yen. The weaker US currency allowed the euro to pull away from a one-week low of $1.0713 to $1.0800. The single currency is now trading at $1.0771.

In contrast to the apparent lack of growth in the US figures from Europe have been more encouraging. Eurozone manufacturing is accelerating, which is a positive sign that economies within the bloc are doing better.

Analysts are now focused on the release of non-farm payroll figures due out before the end of the week.

An increase in oil prices helped the Canadian dollar. However other commodity currencies including the Australian dollar and the New Zealand dollar remain under pressure - the former because of low iron ore prices and the latter because of weak dairy prices.