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Euro Rallies to 2-Year Highs Against the Dollar on Weak US GDP

July 30, 2020 at 19:47 by Simon Mugo

10 and 20 eurocent coins and 10 and 20 euro notes

The euro today rallied to new 2-year highs against the US dollar driven by positive releases from across the eurozone combined with weak US GDP data. The EUR/USD currency pair today was boosted by upbeat German unemployment data as opposed to the rising jobless claims in the US, which dragged the greenback lower.

The EUR/USD currency pair today rallied from a low of 1.1731 in the early European session to a high of 1.1844 in the American session and was near these highs at the time of writing.

The currency pair today headed lower during the Asian session, primarily driven by investor sentiment. The release of upbeat German unemployment data by the Federal Statistical Office, which came in at 6.4%, beating estimates lifted the euro. The pair hit its daily lows after Germany’s flash Q2 GDP fell 10.1% versus the consensus estimate of a 9% drop. The upbeat eurozone business climate and economic sentiment indicators released by the European Commission boosted the pair helping it bottom. The weak German preliminary consumer price index report had a muted impact on the pair, which rallied higher.

The weak flash US Q2 GDP report released by the Bureau of Economic Analysis, which was slightly better than expected, contributed to the pair’s rally. The rising number of continuing jobless claims in the US, as released by the Department of Labor, also boosted the pair.

The currency pair’s future performance is likely to be affected by tomorrow’s multiple eurozone releases.

The EUR/USD currency pair was trading at 1.1841 as of 19:46 GMT, having rallied from a low of 1.1731. The EUR/JPY currency pair was trading at 124.09, having risen from a low of 123.33.

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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