Euro Falls on Weak Eurozone GDP Growth Data, Later Recovers

The euro today fell to new lows against the US dollar following the release of disappointing GDP growth data from across the eurozone. The pair later recovered slightly during the early American session as investors awaited US consumer data.
The EUR/USD currency pair today dropped from a high of 1.1387 to a low of 1.1344 in the American session before retracing most of its losses.
The currency pair was in a tight consolidative phase during the Asian session before heading lower in the early European session after the release of the French GDP data for Q3, which was in line with expectations. The pair then rallied briefly after the release of the German unemployment change data by the Federal Statistical Office, which missed expectations by 1,000 persons. The German unemployment claims rate remained constant at 5.1%, which was in line with consensus estimates. The release of the Italian Q3 GDP data shortly afterwards caused the pair to plunge lower as the print indicated zero growth in the country’s economic output.
The release of the Eurozone business climate indicator and the economic sentiment data for October also contributed to the decline as the prints were lower than expected. The Eurozone Q3 GDP data released by Eurostat also contributed to the decline by missing expectations. The euro pared its losses during the early American session and was boosted by the positive German CPI data.
The pair’s short-term performance is likely to be influenced by the release of US consumer confidence data by the Conference Board.
The EUR/USD currency pair was trading at 1.1375 as at 13:55 GMT having risen from a low of 1.1344. The EUR/JPY currency pair was trading at 128.34 having rallied from a low of 127.74.

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