Euro slows as dollar bouyed by spending news

Story link: Euro slows as dollar bouyed by spending news

Sterling was up early on Thursday in London on news of positive retail sales, but by mid-session in New York it had fallen slightly. Still, sterling remained up 0.1 percent at $1.8355 in against the US dollar, and it was up 0.2 percent to £0.6875 against the euro.

The euro was having it own difficulties in relation to other currencies as a variety of information continued to show a that economic growth in the eurozone has slowed. April headline inflation remained the same for the third straight month, core inflation fell more than was expected, and industrial production continued to fall in March.

Meanwhile, a number of factors let the US dollar renew its rally after two days of very little movement. The fact that unemployment claims fell last week seemed to confirm a trend toward growth in the US economy, while increasing imports from Pacific Rim countries served to contradict indications of slowing consumer spending.

The dollar was up by 0.1 percent in relation to the euro to stand at $1.2620 at mid-day in New York. The dollar was also up against to the yen, rising 0.4 percent to ¥107.55. Meanwhile, the Canadian dollar was slightly lower in relation to the US dollar, down to $1.2632 at mid-day in New York.