Euro surges vs dollar on encouraging economic data

Euro surges vs dollar on encouraging economic data
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Summary Euro surged higher against dollar Thursday after some encouraging economic data in the eurozone.

NEW YORK (AFP) - The euro surged higher against the dollar Thursday after some encouraging economic data in the eurozone, including a welcome rise in prices and stronger-than-expected growth in Spain.

After four months in negative territory, eurozone inflation rose to zero in April as the European Central Bank conducts a massive bond-purchase program to stimulate the tepid economy. Spain s economic growth accelerated in the first quarter to the fastest pace since 2007.

"News that eurozone inflation climbed out of the red added to the euro s better bias," said Joe Manimbo at Western Union Business Solutions.

The euro climbed to $1.1224 around 2100 GMT from $1.1128 late Wednesday.

"The single currency rose for the sixth consecutive trading day to its strongest level since February," said Kathy Lien of BK Asset Management said in a research note. "The one thing that is NOT supporting the uptrend in the EUR/USD is fundamentals."

The dollar gained against the yen and the pound as US economic data came in better than anticipated. US jobless claims fell to a 15-year low and consumer spending in March rose 0.4 percent, double the gain in February.
 

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