The euro today declined against the US dollar despite the release of positive German CPI data as the US dollar rallied higher. The EUR/USD currency pair decline was further exacerbated by the release of positive US GDP data mid-European session.
The currency pair lost over 20 points at the height of its decline, but had retraced some of its losses at the time of writing.
The EUR/USD pair rallied higher during the Asian session to hit a daily high of 1.1434 late in the Asian session. The pair started declining early in the European session despite the release of positive Eurozone Consumer Confidence data by the European Commission. The industrial and services confidence data also exceeded expectations, but could not stop the currency pair’s decline. The release of the German CPI data by the Federal Statistical Office, which came in at 1.6% for June, versus the expected 1.4% had minimal impact on the currency pair.
The release of the US annualized GDP figures for the first quarter by the Bureau of Economic Analysis also contributed to the currency pair’s decline. The GDP figures came n at 1.4% as compared to the expected 1.2%. The US personal consumption estimates for the first quarter also exceeded expectations as it came in at 1.1% versus the expected 0.6%.
The currency pair’s future performance is likely to be affected by the release of German retail sales figures and US personal consumption expenditure, both scheduled for tomorrow.
The EUR/USD currency pair was trading at 1.1409 as at 13:30 GMT having recovered from a low of 1.1387. The EUR/JPY was trading at 128.78 having rallied from its opening price of 127.78.
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