The Euro to US Dollar (EUR/USD) exchange rate strengthened by more than 0.60% on Thursday to advance to its highest level in 3-months as concerns grow over the strength of the US economy. The Pound Sterling to US Dollar (GBP/USD) exchange rate surged to a 6-month high of 1.5789. The Euro to US Dollar (EUR/USD) Exchange Rate Reached A Session High Of 1.1431 Worries are growing that the US economy will not show signs of spring a rebound as had been predicted. Wednesday saw the publication of a weaker-than-forecast retail sales report and data, which showed that the US suffered from a 10th consecutive month of falling import prices. The reports were just the latest ones to disappoint and caused economists to raise their bets that the Federal Reserve will not hike interest rates anytime soon. ‘The economy needs to pick up steam for the Fed to be really satisfied that we’re leaving the weakness of the first quarter behind us. This puts a lot of pressure on next month’s number to be very strong to make up for the weakness in April,’ said Guy Berger, an economist from RBS Securities Inc. The cause for the Euro’s surge higher was the support the currency was generating from a sustained rise in Eurozone government bond yields. Investors were also continuing to digest the previous sessions Eurozone data releases. Economic growth in the Eurozone now contrasts with the disappointing US growth seen in the first quarter.

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