Euro Drops Further Against US Dollar on US GDP Report

The euro today dropped to new lows against the US dollar after the release of positive US GDP data for Q3 2017 in the early American session. The EUR/USD currency pair was on a downtrend after the release of German CPI data in the mid-European session among other Eurozone releases.

The EUR/USD currency pair declined by over 65 points from its daily high of 1.1883 to hit a low of 1.1816 before retracing some of its losses.

The currency pair opened today’s session on a slight uptrend with the euro being boosted by the release of French GDP data, which met expectations. The pair reversed its earlier gains in the early European session after the release of the Eurozone economic sentiment indicator and business climate indicator for November, which were below market consensus. The release of the German CPI data by the Federal Statistical Office, which came in slightly above expectations at an annualized 1.8% in November, could not redeem the euro.

The release of the US annualized GDP data for the third quarter by the Bureau of Economic Analysis also contributed to the pair’s decline. The GDP print was recorded at an annualized 3.3%, which was above the market consensus of a 3.2% rate. The US Core PCE for Q3 2017 also contributed to the decline as it came in at 1.4%, which was above market expectations of 1.3%.

The currency pair’s future performance is likely to be affected by Janet Yellen‘s testimony before Congress and tomorrow’s German employment data.

The EUR/USD currency pair was trading at 1.1834 as at 14:58 GMT having dropped from a daily high of 1.1883. The EUR/JPY currency pair was trading at 132.60 having rallied from a low of 131.95.

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