EUR/USD Declines on Weak Eurozone Releases and Upbeat US GDP, Later Rebounds

The EUR/USD currency pair today fell to new multi-month lows after the release of disappointing French GDP data among other macro releases from the euro block. The pair’s decline was further accelerated by the release of upbeat Q1 GDP data from the USA.

The EUR/USD currency pair lost over 60 points to decline from an initial high of 1.2116 to a low of 1.2053, but later rebounded.

The currency pair’s decline started in the late Asian session and was accelerated by the release of the French GDP data for Q1, which missed expectations by coming in at an annualized 2.1%, versus the expected 2.3% print. The release of the German import price index and the latest German employment report by the Federal Statistical Office also contributed to the pair’s decline. The German jobless claims data met expectations by coming in at 5.3%, while the number of persons in employment increased by 1.4%. The release of the Eurozone economic sentiment indicator triggered a brief rally in the pair as it beat expectations by coming in at 112.7 versus the expected 112.0.

The release of the US Q1 GDP data in the early American session by the Bureau of Economic Analysis also contributed to the pair’s decline as the GP came in at an annualized 2.3% versus the expected 2.0% print. The University of Michigan consumer sentiment index also contributed to the decline by coming in at 98.8 versus the expected 98.0.

Given the upcoming weekend, the currency pair’s future performance is likely to be influenced by political events in both the Eurozone and the USA.

The EUR/USD currency pair was trading at 1.2110 as at 15:23 GMT having rebounded from a daily low of 1.2053. The EUR/JPY currency pair was trading at 132.05 having declined from a high of 132.36.

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