Investing.com - The dollar held steady against the other major currencies on Thursday, as markets stabilized after Britain’s decision to leave the European Union last week rattle financial markets around the globe.
GBP/USD rose 0.20% to 1.3456, off the 31-year low of 1.3122 set on Monday, a level not seen since 1985. The two-day selloff in sterling seen on Friday and Monday was the largest in recent history.
The pound was still recovering from record losses posted as fears that a Brexit could hit investment in the U.K. economy, threaten London's role as a global financial capital and usher in a period of slower global economic growth.
The President of the European Council Donald Tusk said on Wednesday that there was a "calm and serious discussion" about the consequences of the vote.
He also reiterated that there would be no negotiations with the U.K on any future relationship until the country formally notified the EU of its intention to withdraw.
Earlier Thursday, the U.K. Office for National Statistics said gross domestic product expanded by 0.4% in the first quarter, unchanged in this final estimate and in line with expectations. The U.K.’s economy grew by 0.6% in the preceding quarter.
Year-over-year, the U.K. economy grew by 2.0% in the three months ended March 31, also in line with forecasts and unchanged from the prior estimate. The U.K. economy expanded at an annualized rate of 2.1% in the fourth quarter of 2015.
EUR/USD eased up 0.09% to 1.1133, off Friday’s three-month trough of 1.0908, while EUR/GBP edged down 0.17% to 0.8271, still close to Monday’s two-year peak of 0.8378.
In the euro zone, data earlier showed that German retail sales rose 0.9% in May, beating expectations for an increase of 0.7%. Retail sales fell 0.3% in April, whose figure was revised from a previously estimated decline of 0.9%.
A separate report showed that the number of unemployed people in Germany declined by 6,000 in June, compared to expectations for a 5,000 drop. The number of unemployed people fell by 10,000 in May, revised from a previously estimated 11,000 decline.
Germany’s unemployment rate held steady this month at 6.1% in line with expectations.
USD/JPY was little changed at 102.76 after falling to lows of 99.15 on Friday, the weakest level since November 2013, while USD/CHF shed 0.23% to 0.9773.
The Australian and New Zealand dollars were steady, with AUD/USD at 0.7446 and with NZD/USD at 0.7118.
Elsewhere, USD/CAD was little changed at 1.2939.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 95.66.