Euro Struggles to Rally on Upbeat Eurozone Data Amid Turkish Crisis

The euro today struggled to rally higher despite the release of upbeat data from across the Eurozone such as the German GDP report. The EUR/USD currency pair was largely weighed down by the ongoing currency crisis in Turkey, which has negatively affected the global financial markets.
The EUR/USD currency pair today traded between a high of 1.1429 and a low of 1.1384 and was on a downtrend at the time of writing.
The release of the German GDP data by the Federal Statistical Office in the early European session boosted the currency pair. The GDP data came in at a quarterly 0.5% beating the consensus estimate of 0.4% and boosting the euro. However, the annualized GDP print came in at 2.3% missing expectations by 0.2%. The German CPI data also released today boosted the currency pair by coming in at 2.0% thereby, meeting expectations. The Eurozone industrial production data also beat expectations by coming in at an annualized 2.5% versus the expected 2.4%. The Eurozone GDP data released by Eurostat also boosted the pair by coming in at an annualized 2.2% versus the expected 2.1%.
The release of the German ZEW survey of economic expectations also boosted the pair by coming in at -13.7 versus the expected -21.3. The euro was weighed down by the Turkish lira crisis even as President Recep Tayyip Erdogan announced that the country would boycott US electronics.
The currency pair’s short-term performance is likely to be influenced by geopolitical events and tomorrow’s macro data from the US docket.
The EUR/USD currency pair was trading at 1.1393 as at 12:45 GMT having dropped from a high of 1.1429. The EUR/JPY currency pair was trading at 126.34 having declined from a high of 126.99.

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