Euro Rallies to 2-Year Highs Against the Dollar on Weak US GDP

The  euro today rallied to  new 2-year highs against the  US dollar driven by  positive releases from across the  eurozone combined with weak US GDP data. The  EUR/USD currency pair today was boosted by  upbeat German unemployment data as  opposed to  the  rising jobless claims in  the  US, which dragged the  greenback lower.
The  EUR/USD currency pair today rallied from a  low of  1.1731 in  the  early European session to  a  high of  1.1844 in  the  American session and  was near these highs at  the  time of  writing.
The  currency pair today headed lower during the  Asian session, primarily driven by  investor sentiment. The  release of  upbeat German unemployment data by  the  Federal Statistical Office, which came in  at  6.4%, beating estimates lifted the euro. The  pair hit its daily lows after Germany’s flash Q2 GDP fell 10.1% versus the  consensus estimate of  a  9% drop. The  upbeat eurozone business climate and  economic sentiment indicators released by  the  European Commission boosted the  pair helping it bottom. The  weak German preliminary consumer price index report had a  muted impact on  the  pair, which rallied higher.
The  weak flash US Q2 GDP report released by  the  Bureau of  Economic Analysis, which was slightly better than expected, contributed to  the  pair’s rally. The  rising number of  continuing jobless claims in  the  US, as  released by  the  Department of  Labor, also boosted the  pair.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s multiple eurozone releases.
The  EUR/USD currency pair was trading at  1.1841 as  of  19:46 GMT, having rallied from a  low of  1.1731. The  EUR/JPY currency pair was trading at  124.09, having risen from a  low of  123.33.
If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.