Eurozone GDP Keeps Euro Rangebound Against Majors

Euro is trading mostly rangebound against its major counterparts today, thanks in large part to a GDP reading that didn’t surprise anyone. It’s not quite enough to make solid gains against the dollar and the yen, but bad news in the United Kingdom has the euro higher than the pound.

The latest GDP reading for the eurozone, released by Eurostat, indicates that the economy for the euro region grew by 0.3 per cent. This is in line with expectations, but the eurozone economy is still showing weakness. Inflation remains low, in spite of negative deposit rates and continued quantitative easing from the ECB. This means that interest rates aren’t likely to rise for some time, and the 19-nation currency will be at a disadvantage against its major counterparts, especially the dollar.
Euro is doing better against the UK pound, though. Disappointing data about the UK economy is sending the sterling lower in general today. As more data is released and more policy statements are made later this week, we might see a little more movement.
At 13:49 GMT EUR/USD is lower, moving down to 1.1246 from the open at 1.1255. EUR/GBP is higher, moving up to 0.8402 from the open at 0.8375. EUR/JPY is down to 114.14 from the open at 114.82.

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