Euro Rallies Higher on Positive German GDP Data and Weak US Data

The euro today rallied higher against the US dollar following the release of mixed data from Germany led by the positive German Q2 GDP data. The EUR/USD currency pair posted more gains following the release of weak data from the US docket in the early American session.
The EUR/USD currency pair today rallied from an initial low of 1.1538 to a high of 1.1599 in the early American session.
The currency pair’s rally begun in the Asian session as the US dollar retraced some of yesterday’s gains. The pair rallied higher in the early European session following the release of the German Q2 GDP data by the Federal Statistical Office. The GDP print met expectations by coming in at a quarterly 0.5% translating into an annualized 2.0%. Other German releases such as the private consumption and capital investment data, which came in below expectations had a muted impact on the currency pair. The cautious tone adopted by the European Central Bank in yesterday’s minutes seemed to hold back the pair from further gains.
The release of the US durable goods orders by the Census Bureau in the early American session further boosted the pair as the print missed expectations. The durable goods orders dropped by 1.7% versus the expected 0.5% drop, while the core orders only gained 0.2% as opposed to the expected 0.5% gain.
The currency pair’s short-term performance is likely to be affected by the Fed Chair Jerome Powell‘s speech at the Jackson Hole symposium later today.
The EUR/USD currency pair was trading at 1.1598 as at 13:26 GMT having risen from a low of 1.1538. The EUR/JPY currency pair was trading at 129.17 having rallied from a low of 128.48.

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