Euro Falls Against Resurgent US Dollar Amid Upbeat US GDP Data

The euro today fell against the US dollar, which was on a recovery path following yesterday’s selloff that was triggered by the risk-on market sentiment. The EUR/USD currency pair headed lower in the early American session following the release of the US Q2 GDP data, which beat consensus estimates.
The EUR/USD currency pair today dropped from a high of 1.1697 in the Asian session to a low of 1.1652 in the mid-European session erasing all of yesterday’s gains.
The currency pair headed lower earlier today following the release of the German GfK consumer climate report for August, which came in at 10.5 missing expectations by 0.1. The release of the French GDP growth data for the second quarter shortly thereafter had a muted impact on the pair. The GDP print met expectations by coming in at a quarterly 0.2 % and an annualized 1.7%. The pair’s initial decline was triggered by the greenback’s recovery as tracked by the US Dollar Index, which hit a high of 94.93, amid the mixed European releases.
The release of the US Q2 GDP data by the Bureau of Economic Analysis in the early American session had a slight negative impact on the currency pair. The GDP print came in at 4.2%, which was higher than the expected 4.0%. However, the pair reversed its decline shortly after the release.
The currency pair’s future performance is likely to be affected by tomorrow’s German unemployment and CPI data, and the US PCE data.
The EUR/USD currency pair was trading at 1.1671 as at 13:50 GMT having dropped from a high of 1.1697. The EUR/JPY currency pair was trading at 130.00 having recovered from a low of 129.56.

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