The EUR/USD currency pair opened today’s session with a bearish outlook given the dovish outlook painted by ECB President Mario Draghi yesterday, which led to a bearish ‘outside day.’ The currency pair was on a downtrend up to the early American session when the flash US Q2 GDP report was released, which boosted the pair.
The EUR/USD currency pair today dropped to a low of 1.1619 before rallying to a high of 1.1661 in the early American session.
The currency pair extended yesterday’s decline into today’s session following Draghi’s comments that inflation in the euro area lacked sustainable traction. The release of the French Q2 GDP earlier today served to drive the pair lower as it missed expectations. The German import price index released by the Federal Statistical Office served to boost the pair as it came in at 4.8% versus the expected 4.5%. However, the release of the European Central Bank‘s survey of professional forecasters drove the pair lower as the report slashed the Eurozone GDP growth estimates for this year and 2019 to 2.2% and 1.9% respectively.
The release of the preliminary estimate of the US Q2 GDP growth rate by the Bureau of Economic Analysis boosted the currency pair. The GDP estimate came in at an annualized 4.1% versus the expected 4.2%, while the Personal Consumption Expenditure came in at 2.0% versus the expected 2.2%. The release of the positive University of Michigan consumer sentiment survey had a muted impact on the pair.
Geopolitical developments are likely to influence the currency pair’s future performance over the upcoming weekend.
The EUR/USD currency pair was trading at 1.1651 as at 14:57 GMT having rallied from a low of 1.1619. The EUR/JPY currency pair was trading at 129.28 having dropped from a high of 129.43.
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