Euro Heads Lower After Turbulent Week, Recovers on US GDP Data

The  euro today broke out of  a  consolidative phase against the  US dollar in  the  early European session as  concerns regarding Italy and  the global equity markets selloff weighed on  the  single currency. The  EUR/USD currency pair later found a  floor just before the  release of  the latest US GDP growth data in  the  early American session and  rallied slightly on  the  news.
The  EUR/USD currency pair today declined from a  high of  1.1383 to  a  low of  1.1334 before retracing some of  its losses.
The  first trigger behind the  currency pair’s decline was the  equity markets sell-off that persisted through the  Asian market and  spilled over into the European markets. The  standoff between Italy and  the  European Union regarding the  country’s budget also served the  weaken the  single currency. The  release of  the  positive German GfK consumer confidence survey earlier in  the  session triggered a  brief rally by  the  currency pair. The  release of  the  European Central Bank’s survey of  professional forecasters also had a  slight positive impact on  the  pair.
The  release of  the  US GDP growth data for  the  third quarter by  the  Bureau of  Economic Analysis had the  opposite impact on  the  pair as  it rallied higher after the  announcement. This was despite the  fact that the  GDP print came in  at  3.5% beating expectations by  0.2%.
The  currency pair’s future performance is likely to  be affected by  Mario Draghi‘s speech and  the  University of  Michigan consumer confidence survey both scheduled for  later today.
The  EUR/USD currency pair was trading at  1.135 as  at  13:52 GMT having recovered from a  low of  1.1334. The  EUR/JPY currency pair was trading at  127.07 having declined from a  high of  127.84.

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