Euro Rallies Against US Dollar as US Q2 GDP Estimate Misses Expectations

The  EUR/USD currency pair opened today’s session with a  bearish outlook given the  dovish outlook painted by  ECB President Mario Draghi yesterday, which led to  a  bearish ‘outside day.’ The  currency pair was on  a  downtrend up to  the  early American session when the  flash US Q2 GDP report was released, which boosted the  pair.
The  EUR/USD currency pair today dropped to  a  low of  1.1619 before rallying to  a  high of  1.1661 in  the  early American session.
The  currency pair extended yesterday’s decline into today’s session following Draghi’s comments that inflation in  the  euro area lacked sustainable traction. The  release of  the  French Q2 GDP earlier today served to  drive the  pair lower as  it missed expectations. The  German import price index released by  the  Federal Statistical Office served to  boost the  pair as  it came in  at  4.8% versus the  expected 4.5%. However, the  release of  the  European Central Bank‘s survey of  professional forecasters drove the  pair lower as  the  report slashed the  Eurozone GDP growth estimates for  this year and  2019 to  2.2% and  1.9% respectively.
The  release of  the  preliminary estimate of  the  US Q2 GDP growth rate by  the  Bureau of  Economic Analysis boosted the  currency pair. The  GDP estimate came in  at  an  annualized 4.1% versus the  expected 4.2%, while the  Personal Consumption Expenditure came in  at  2.0% versus the  expected 2.2%. The  release of  the  positive University of  Michigan consumer sentiment survey had a  muted impact on  the  pair.
Geopolitical developments are likely to  influence the  currency pair’s future performance over the  upcoming weekend.
The  EUR/USD currency pair was trading at  1.1651 as  at  14:57 GMT having rallied from a  low of  1.1619. The  EUR/JPY currency pair was trading at  129.28 having dropped from a  high of  129.43.

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