The euro was flat at $1.1146, just short of the $1.11735 touched on Wednesday, its strongest since July 2023
The euro held steady near its highest in more than a year against the dollar on Thursday, after solid euro zone business activity data and ahead of euro zone wage figures that will shape the path of interest rates for the European Central Bank.
The euro was flat at $1.1146, just short of the $1.11735 touched on Wednesday, its strongest since July 2023.
It has been supported in recent weeks by weakness in the dollar as a dovish Fed and fresh signs of weakness in the U.S. job market back the case for interest rate cuts.
European developments will be in focus for the euro on Thursday. The common currency declined after a preliminary survey showed German business activity declined in August for a second straight month and by more than expected, but bounced back after euro zone wide data showed surprising strength.
Up next is wage growth data for the currency bloc due at 0900 GMT which will guide expectations of upcoming ECB policy, and hence the euro’s direction.
A material slowing in Q2 2024 euro area negotiated wage growth will support a September rate cut, said Andrzej Szczepaniak, senior European economist at Nomura.
He said recent German and French data indicates wage growth will moderate to below 4% from 4.7% in the first quarter.
The pound was stable at $1.3095, having reached $1.31195, also a 13-month high, the earlier session, and the dollar was 0.15% stronger on the yen at 145.46.
That left the dollar index up 0.1% at 101.22.
The index skidded to 100.92 on Wednesday for the first time this year, weakening as markets become more confident the Fed is on track for rate cuts starting in September.
