The European Single Currency, euro, on Wednesday May 2, soared 0.1 percent to $1.20 EUR=, up from the lows of $1.1981 hit earlier this week.
The euro EUR=EBS received some reprieve after posting its biggest weekly loss in more than two months last week after data showed the euro zone’s economy slowing as expected in the first quarter of 2018.
Expectations of a Bank of England rate rise this month have virtually been priced out. The European Central Bank and central banks in Japan, Switzerland and Sweden have all hinted that policy tightening remains some way off.
Fresh data confirmed that expectation for the euro zone, showing first-quarter growth at 0.4 percent, below the 0.7 percent quarterly increases seen in the past three quarters.
HSBC analysts said the data showed the euro zone was experiencing “a slowdown not a slump” but they added that with inflation staying weak, “there is every reason for the ECB to maintain a dovish stance for the time being.”
The British Pound Sterling added 0.3 percent at $1.3656 as a construction survey came in stronger than expected. Sterling fell to a four-month low of $1.3588 on Tuesday, Reuters reports.
