The EUR/USD currency pair today recorded a major decline after the release of positive US GDP data early in the North American session. The decline, which started early in today’s session, had been halted briefly after the release of positive German CPI data in the mid-European session.
The currency pair lost over 90 points at the height of its decline, extending a downward slide that begun yesterday.
The EUR/USD pair came under intense selling pressure after the release of the US ADP employment change report, which beat expectations. According to the report, the private sector added 237,000 new jobs in August as compared to the market expectation of 185,000 new jobs. The release of the US GDP data by the Bureau of Economic Analysis a few minutes later also drove the pair lower as the GDP grew by about 3.0% on a annualized basis versus the expected 2.7% increase. The quarterly GDP print also met expectations by coming in at 1.0%.
The release of the German CPI data by the Federal Statistical Office provided a brief respite for the spot, but the downward trend resumed soon thereafter. The CPI data came in at 1.8% on a annualized basis meeting expectations. The release of the Eurozone economic confidence survey by the European Commission, which exceeded expectations, had minimal impact on the currency pair.
The currency pair’s future performance is likely to be affected by the release of Germany’s unemployment change data and the US PCE report, both scheduled for tomorrow.
The EUR/USD currency pair was trading at 1.1914 as at 14:57 GMT having dropped from a high of 1.1985 earlier today. The EUR/JPY pair was trading at 131.28 having rallied from a daily low of 131.13.
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