EUR/USD on Thursday extend its bounce from key support at the 1.0800 level. Initially hitting a one-week high near 1.1017 in early trading on Thursday, the currency pair pared some of those gains in the beginning of the US trading session as US unemployment claims were reported to have reached the lowest level in four decades at 255K. This initially helped to boost the dollar and weigh on the euro’s earlier gains. From a broader perspective, downside risk continues to pressure the euro, even as the prospect of a Greek exit of the common currency has been subdued for the time being. At the same time, the US dollar has long appreciated against the euro and currently has even more reason to do so with a looming interest rate hike potentially on the horizon.
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