EUR/USD Above 1.14 after U.S. Data Undermines Q2 Growth Hopes

The U.S. dollar held near its lowest since January against a currency basket on Thursday after soft U.S. producer prices data challenged hopes for better U.S. economic growth and supported the view that the Federal Reserve would delay hiking interest rates.

The U.S. Labor Department said its producer price index for final demand fell 0.4 percent last month, declining for the third time this year. While data showing U.S. jobless claims fell last week indicated solid footing in the U.S. jobs market, the inflation data reinforced views of a dovish Fed.

“We need to see clarity that the underlying growth trend in the U.S. economy is actually firmer than the Q1 number would suggest” in order for the dollar to resume its strengthening trend, said Jose Wynne, global head of FX research at Barclays in New York.


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