Euro Falls on Weak Eurozone GDP Growth Data, Later Recovers

The  euro today fell to  new lows against the  US dollar following the  release of  disappointing GDP growth data from across the  eurozone. The  pair later recovered slightly during the  early American session as  investors awaited US consumer data.
The  EUR/USD currency pair today dropped from a  high of  1.1387 to  a  low of  1.1344 in  the  American session before retracing most of  its losses.
The  currency pair was in  a  tight consolidative phase during the  Asian session before heading lower in  the  early European session after the  release of  the  French GDP data for  Q3, which was in  line with expectations. The  pair then rallied briefly after the  release of  the  German unemployment change data by  the  Federal Statistical Office, which missed expectations by  1,000 persons. The  German unemployment claims rate remained constant at  5.1%, which was in  line with consensus estimates. The  release of  the  Italian Q3 GDP data shortly afterwards caused the  pair to  plunge lower as  the  print indicated zero growth in  the  country’s economic output.
The  release of  the  Eurozone business climate indicator and  the  economic sentiment data for  October also contributed to  the  decline as  the  prints were lower than expected. The  Eurozone Q3 GDP data released by  Eurostat also contributed to  the  decline by  missing expectations. The  euro pared its losses during the  early American session and  was boosted by  the  positive German CPI data.
The  pair’s short-term performance is likely to  be influenced by  the  release of  US CCI data by  the  Conference Board.
The  EUR/USD currency pair was trading at  1.1375 as  at  13:55 GMT having risen from a  low of  1.1344. The  EUR/JPY currency pair was trading at  128.34 having rallied from a  low of  127.74.

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