Euro Rallies Higher on Positive German GDP Data and Weak US Data

The  euro today rallied higher against the  US dollar following the  release of  mixed data from Germany led by  the  positive German Q2 GDP data. The  EUR/USD currency pair posted more gains following the  release of  weak data from the  US docket in  the  early American session.
The  EUR/USD currency pair today rallied from an  initial low of  1.1538 to  a  high of  1.1599 in  the  early American session.
The  currency pair’s rally begun in  the  Asian session as  the  US dollar retraced some of  yesterday’s gains. The  pair rallied higher in  the  early European session following the  release of  the  German Q2 GDP data by  the  Federal Statistical Office. The  GDP print met expectations by  coming in  at  a  quarterly 0.5% translating into an  annualized 2.0%. Other German releases such as  the  private consumption and  capital investment data, which came in  below expectations had a  muted impact on  the  currency pair. The  cautious tone adopted by  the  European Central Bank in  yesterday’s minutes seemed to  hold back the  pair from further gains.
The  release of  the  US durable goods orders by  the  Census Bureau in  the  early American session further boosted the  pair as  the  print missed expectations. The  durable goods orders dropped by  1.7% versus the  expected 0.5% drop, while the  core orders only gained 0.2% as  opposed to  the  expected 0.5% gain.
The  currency pair’s short-term performance is likely to  be affected by  the  Fed Chair Jerome Powell‘s speech at  the  Jackson Hole symposium later today.
The  EUR/USD currency pair was trading at  1.1598 as  at  13:26 GMT having risen from a  low of  1.1538. The  EUR/JPY currency pair was trading at  129.17 having rallied from a  low of  128.48.

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