The euro today rallied higher against the US dollar after the release of German GDP data by the Federal Statistical Office. Other releases from the Eurozone including the higher consumer prices in Germany served to boost the euro against the greenback.
The EUR/USD currency pair rallied by over 45 points to hit a high of 1.1710 after the German releases.
The release of the German GDP data for the third quarter of 2017 was the main trigger for the euro’s rally. The Q3 2017 GDP came in at 0.5% on a quarterly basis, which was higher than the expected 0.4% increase. The GDP print came in at an annualized rate of 2.3% beating the market expectations of 2.0% GDP growth. The release of German CPI data for October also boosted the euro as it was recorded at 1.6% on an annualized basis, thus, meeting expectations. Other releases from the Eurozone such as GDP data from the Netherlands and Italy, both of which beat expectations, also lifted the euro.
The demand for the US dollar was largely weak as evidenced by the US Dollar Index, which was trading at 94.39, at the time of writing. The greenback was weighed down by the looming uncertainty over the US tax reform plan.
The currency pair’s short-term performance is likely to be influenced by the release of the Eurozone GDP report, ZEW surveys for the Euro area and Germany as well as speeches by Janet Yellen and Mario Draghi at the ECB conference in Frankfurt.
The EUR/USD currency pair was trading at 1.1706 as at 09:36 GMT having rallied from a daily low of 1.1661. The EUR/JPY currency pair was trading at 133.23 having risen from a low of 132.46.
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