The euro today fell to new lows against the US dollar following the release of disappointing German and eurozone GDP growth data in the early European session. The EUR/USD currency pair failed to rally higher following the release of weak US retail sales data in the early American session as investor risk appetite remained subdued.
The EUR/USD currency pair today dropped from a high of 1.1217 in the European session to a low of 1.1176 in the early American session and was near these lows at the time of writing.
The currency pair opened today’s session with a bullish bias and made some gains during the Asian session. However, the release of weak preliminary German Q1 GDP data in the early European session soured investor sentiment. According to Germany’s Federal Statistical Office, the country’s GDP expanded by 0.6%, which was lower than the consensus estimate of a 0.7% increase. Other eurozone releases such as France’s April CPI data and Italy’s March industrial orders had a muted impact on the pair, which rallied slightly. The release of the eurozone preliminary Q1 GDP growth data, which missed expectations triggered the currency pair’s drop.
According to Eurostat, the eurozone economy expanded by 0.3% in Q1 missing expectations by 0.1%. The upbeat eurozone employment change data released at the same time could not stop the pair from falling.
The currency pair’s future performance is likely to be affected by trade headlines, investor risk sentiment and tomorrow’s eurozone trade balance report.
The EUR/USD currency pair was trading at 1.1186 as at 13:30 GMT having dropped from a high of 1.1217. The EUR/JPY currency pair was trading at 122.24 having fallen from a high of 123.00.
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