Investing.com - The euro rose to three-week highs against the dollar on Thursday, after data showed that U.S. retail sales fell unexpectedly in December and another report showed that initial jobless claims rose last week.
EUR/USD hit 1.3692, the highest since January 27 and was last up 0.61% to 1.3675. The pair fell to lows of 1.3561 on Wednesday.
The pair was likely to find support at 1.3584, the session low and near-term resistance at 1.3700.
U.S. retail sales fell 0.4% last month, confounding expectations for a 0.3% increase the Commerce Department said. December’s figure was revised down to a decline of 0.1% from a previously reported 0.2% increase.
Core retail sales, which exclude auto sales, were flat in January, compared to expectations for a 0.1% rise.
The weak data added to concerns that the economic recovery in the U.S. has lost momentum since the end of last year.
Meanwhile, the Department of Labor reported that the number of people who filed for unemployment assistance in the U.S. last week rose by 8,000 to 339,000 from the previous week’s total of 331,000.
Analysts had expected jobless claims to fall by 1,000.
The euro weakened against the other main currencies on Wednesday after European Central Bank Executive Board member Benoit Coeure said in an interview with Reuters that the bank is considering a negative deposit rate very seriously.
The remarks sparked concerns that the bank could cut rates next month, in order to safeguard the fragile recovery in the euro area.
Elsewhere, the euro slipped lower against the yen, with EUR/JPY down 0.11% to 139.20, holding above Wednesday’s lows of 138.66.
The euro was higher against the pound, with EUR/GBP rising 0.38% to 0.8220.
Demand for sterling continued to be underpinned after the Bank of England raised its U.K. economic growth forecast for 2014 to 3.4% from 2.8% on Wednesday, and indicated that it may raise rates as soon as next year.