The euro today fell against the US dollar as investors took profits following its blistering rally and the weak euro area GDP data did not help the single currency. The EUR/USD currency pair fell from the early European market as investors took profits on their positions to end a very profitable month for traders who were bullish on the euro.
The EUR/USD currency pair today inched to a high of 1.1908 in the Asian session before falling to a low of 1.1781 during the American market and was headed lower at the time of writing.
The currency pair fell from the early European session despite the release of upbeat German retail sales data for June. According to Germany’s Federal Statistical Office, the country’s retail sales fell 1.6%, translating to an annualised 5.9% beating consensus estimates of 3%. The upbeat France GDP report for June released by Insee also had a muted impact on the single currency. The upbeat preliminary Italian GDP data for June released by Istat also could not stop the euro’s fall.
The pair’s decline was accelerated by the weak flash eurozone Q2 GDP print, which came in at -12.1% as compared to the expected -12% figure. The positive eurozone consumer price index report for June released by Eurostat helped cushion the pair slightly as the print came in at 0.4% versus the consensus estimate of 0.2%.
The currency pair’s future performance is likely to be affected by geopolitical events and US dollar dynamics over the upcoming weekend.
The EUR/USD currency pair was trading at 1.1704 as at 17:02 GMT, having fallen from a high of 1.1908. The EUR/JPY currency pair was trading at 124.84, having rallied from a low of 123.84.
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