Investing.com - The euro extended gains against the dollar on Thursday following the release of a flurry of U.S. data, as expectations for further monetary easing by the European Central Bank diminished after stronger-than-expected data on euro zone private sector activity.
EUR/USD hit 1.3671, the highest since January 15 and was last up 0.89% to 1.3667.
The pair was likely to find support at 1.3600 and resistance at 1.3715.
The common currency was boosted after a larger than expected increase in euro zone private sector activity this month indicated that the recovery in the euro area is strengthening.
Markit said the euro zone’s composite output index rose to a 31-month high of 53.2 in January, up from a final reading of 52.1 in December, as growth picked up in Germany and the rate of decline eased in France.
Manufacturing activity in Germany expanded at the fastest pace since May 2011 this month.
In the U.S., data on Thursday showed that initial jobless claims rose in line with expectations last week, but the number of continuing jobless claims remained above the three million mark for the second successive week.
The number of people who filed for unemployment assistance in the U.S. last week rose to 326,000, the Labor Department said, up from the previous week’s revised total of 325,000.
The number of people filing continuing unemployment claims rose to 3.056 million up from 3.022 million in the week to January 11. Analysts had expected continuing claims to fall to 2.930 million.
Another report showed that U.S. factory output fell to a three-month low in January, due to disruption from unseasonable cold weather.
The U.S. manufacturing PMI declined to 53.7 this month from a final reading of 55.0 in December. Analysts had expected the index to hold steady.
Also Thursday, a report showed that U.S. existing home sales increased 1% to 4.87 million units last month from 4.82 million in November, undershooting expectations for an increase to 4.94 million.
Elsewhere, the shared currency hit session highs against the pound, with EUR/GBP rising 0.72% to 0.8232, up from the one-year lows of 0.8167 struck on Wednesday.
Demand for sterling continued to be underpinned after data on Wednesday showing a sharper than expected fall in the U.K. unemployment rate fuelled expectations that the Bank of England could raise interest rates sooner than previously thought.
But the minutes of the BoE’s January meeting, also published on Wednesday, stressed that the bank is in no rush to act.
The pound shrugged off private sector data on Thursday showing that retail sales growth slowed this month.
The Confederation of British Industry said its index of U.K. retailers fell to 14.0 down from 34.0 in December. Analysts had expected the index to decline to 25.0 in January.