Euro Declines on 5-Year Low German GDP Data and Dovish Draghi

The  euro today dropped significantly against the  US dollar from the  early European session after attempting to  rally higher during the  Asian session. The  single currency’s decline was initially triggered by  the  US dollar’s rebound before the  weak German GDP data caused it to  crash to  new weekly lows.
The  EUR/USD currency pair today dropped from a  high of  1.1490 to  a  low of  1.1385 following Draghi’s speech.
The  currency pair’s initial decline was triggered by  the  stronger greenback before the  release of  the  provisional German GDP growth data for  2018. According to  Germany’s Federal Statistical Office, the  country’s economy grew by  1.5% in  2018, which was much lower than the  2.2% recorded in  2017. The  slowdown in  economic growth within the  EU’s largest economy triggered a  selloff in  the  single currency as  investors digested the  news. The  currency pair headed lower in  the  American session following dovish comments by  the  European Central Bank President during his annual speech at Strasbourg. According to  Mario Draghi, recent economic releases have been quite weak, which has occasioned the  need for  further stimulus measures.
The  release of  weak New York Empire State Manufacturing Index  in  the  early American session had a  muted impact on  the  currency pair. The  release of  the  mixed US producer price index data by  the  Bureau of  Labor Statistics also had minimal impact on  the  pair.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s harmonized German consumer price index data for  December.
The  EUR/USD currency pair was trading at  1.1397 as  at  17:05 GMT having crashed from a  high of  1.1490. The  EUR/JPY currency pair was trading at  123.85 having fallen from a  high of  124.85.

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