Euro Falls Against Resurgent US Dollar Amid Upbeat US GDP Data

The  euro today fell against the  US dollar, which was on  a  recovery path following yesterday’s selloff that was triggered by  the  risk-on market sentiment. The  EUR/USD currency pair headed lower in  the  early American session following the  release of  the  US Q2 GDP data, which beat consensus estimates.
The  EUR/USD currency pair today dropped from a  high of  1.1697 in  the  Asian session to  a  low of  1.1652 in  the  mid-European session erasing all of  yesterday’s gains.
The  currency pair headed lower earlier today following the  release of  the  German GfK consumer climate report for  August, which came in  at  10.5 missing expectations by  0.1. The  release of  the  French GDP growth data for  the  second quarter shortly thereafter had a  muted impact on  the  pair. The  GDP print met expectations by  coming in  at  a  quarterly 0.2 % and  an  annualized 1.7%. The  pair’s initial decline was triggered by  the  greenback’s recovery as  tracked by  the  US Dollar Index, which hit a  high of  94.93, amid the  mixed European releases.
The  release of  the  US Q2 GDP data by  the  Bureau of  Economic Analysis in  the  early American session had a  slight negative impact on  the  currency pair. The  GDP print came in  at  4.2%, which was higher than the  expected 4.0%. However, the  pair reversed its decline shortly after the  release.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s German unemployment and  CPI data, and  the  US PCE data.
The  EUR/USD currency pair was trading at  1.1671 as  at  13:50 GMT having dropped from a  high of  1.1697. The  EUR/JPY currency pair was trading at  130.00 having recovered from a  low of  129.56.

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