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