The Brazilian real strengthened marginally in early trading Thursday, as concerns over the European debt crisis eased somewhat after more positive declarations by France and Germany rekindled risk appetite
. The real traded at BRL1.7107 to the U.S. dollar at 12:41 GMT, stronger than its Wednesday exit from usual trading at BRL1.7185, according to Tullet Prebon via FactSet.
Investor sentiment was buoyant in global currency markets after German chancellor Angela Merkel and French premier Nicolas Sarkozy highlighted Greece's importance as a member of the euro zone Wednesday and said they were convinced that Greece wouldn't leave the euro zone, giving moral support to Greek prime minister George Papandreou. Greece's possible exit had been rumored in recent days giving the seriousness of its debt problem.
The euro won back ground against the U.S. dollar and European stock markets rose in morning trading.
Markets nonetheless looked set for further volatility on the various economic indicators to be announced Thursday in the U.S.
U.S. Labor Department figures announced early in the day showed disappointing data on new unemployment benefit claims: these grew by 11,000 in the week to Sept. 10, to a total of 428,000, far higher than market expectations of a rise of 1,000.
Traders noted that neither the U.S. economy nor the world economy have yet recovered, three years after the Lehman Bros bank collapse, which marked the start of the global economic crisis.
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