Euro Climbs On US GDP Surprise

The euro remained above $1.36 on Thursday after US GDP figures disappointed on Wednesday. The common currency traded at $1.3627 at 8:00 GMT after reaching a three week high of $1.3652 on Wednesday.

Reuters reported that the US released data on Wednesday which showed that the nation's first quarter gross domestic product declined 2.9 percent on the year, the largest contraction the US has seen in five years. The downward revision disappointed and took the greenback lower against most other currencies.

While it was already common knowledge that the US struggled during the first quarter, mostly due to an unusually severe winter, the new GDP data took away from speculation that the Fed could be planning to raise its interest rates sooner rather than later. Recent data from the US has shown the economy is heading back to solid ground after a shaky first quarter, which many believed could push the US central bank to increase its main interest rate shortly after it finishes tapering its bond buying program. However, the disappointing GDP data did little to support those predictions.

Meanwhile, in the eurozone, policymakers will gather in Brussels on Thursday to begin the EU summit. The meeting will be closely watched as EU leaders are expected to sign a trade agreement with Ukraine, something Russia has long opposed. The agreement could further strain Moscow's relations with the West as the Kremlin have threatened to scale back trade activities with countries who have chosen to align with the EU.