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Euro Inches Higher On In-Line Eurozone GDP and Weak Dollar

December 5, 2019 at 18:24 by Simon Mugo

Various euro billsThe euro today inched higher against the US dollar driven by the latest eurozone GDP data, which met expectations, and positive market sentiment. The weaker greenback also fueled the EUR/USD currency pair’s gains as investors remained sceptical about the possibility of a US-China trade deal.

The EUR/USD currency pair today rose from a low of 1.1079 in the early European session to a high of 1.1107 in the American session and was near these highs at the time of writing.

The currency pair traded in a tight sideways range during the Asian session but started inching higher as the European session got underway. The pair rallied higher despite the release of the disappointing German factory orders data for October by the Federal Statistical Office. The October factory orders contracted by 0.4% surprising both investors an analysts who expected a 0.4% expansion. The release of the in-line eurozone Q3 GDP report by Eurostat combined with the employment change data for Q3 helped support the pair as both prints met expectations. The disappointing euro area retail sales data for October also released by Eurostat limited the pair’s gains.

The pair posted gains in the American session despite the release of upbeat US trade balance data for October by the Census Bureau. The positive US initial jobless claims report combined with the upbeat US factory orders data for October could not hold down the pair.

The currency pair’s future performance is likely to be affected by tomorrow’s German industrial production data and US non-farm payrolls report.

The EUR/USD currency pair was trading at 1.1101 as at 18:23 GMT having risen from a low of 1.1079. The EUR/JPY currency pair was trading at 120.66 having dropped from a high of 120.88.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

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