The EUR/USD currency pair today hit new session lows despite the release of strong German GDP data by the Federal Statistical Office. The currency pair was under intense selling pressure for the second consecutive session given the strong US dollar.
The currency pair lost about 70 points at the height of it decline after the release of the German GDP data, but had since retraced come of its losses.
The EUR/USD currency pair traded lower despite the release of German GDP growth data, which exceeded expectations. Germany’s GDP grew by 0.6% on a quarterly basis as opposed to the market consensus of 0.7%. On an annualized basis, Germany’s GDP growth exceeded market expectations by coming in at 2.1% versus the expected 1.9%. The positive German data had minimal impact on the currency pair.
The strong US dollar weighed down the euro even as the US Dollar Index hit new highs above 93.60 as the index rallied higher for the second consecutive session. The greenback’s rally is largely due to a rebound in US bond yields after hawkish comments from New York Fed William Dudley. Dudley stated during an interview yesterday that he expects the FOMC to hike interest rates for the third time this year, if economic forecasts meet expectations.
The currency pair’s future performance is likely to be affected by the release of US advance retail sales data and the New York Empire State Manufacturing Index, both scheduled for later today.
The EUR/USD currency pair was trading at 1.1760 as at 09:09 GMT having recovered from a low of 1.1720. The EUR/JPY was trading at 129.80 having risen from a low of 129.45.
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