The EUR/USD trading pair went down in today’s trading as the greenback got support from the US economic data.
The United States’ second-quarter economic growth data went down to 2.0% from 2.1%. Despite the slowdown, the data met the expectation of critics thus lessening the impact on the dollar.
The EUR/USD trading pair moved down as soon as the report was released. The pair declined by 0.11%, or 0.0012 points, in sessions.
The EUR to USD currently trades for $1.1043 a tad lower than its previous close of $1.1055. The EUR/USD extended its losses from $1.1035 to $1.1061 in Friday’s sessions.
Aside from the greenback’s gains against the single currency, USD traders were also delighted by the US dollar index’s progress.
The US dollar index or DXY is seen edging up by 0.05%, or 0.05 points, in sessions. The US dollar index future for September 19 or DXU9 slightly inched up by 0.02% or 0.017 points.
Analysts are advising EUR/USD traders to brace themselves for a wild ride. According to forecasts, Europe’s single currency will have difficulties standing against the dollar if crucial data from the eurozone disappoints the market.
The Eurozone’s unemployment and CPI data are set to be released soon and if the data fails to meet experts’ expectations, the euro may continue to fall. If that happens, it could reinforce notions for the European Central Bank to release fresh stimulus.
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Aside from the United States economic growth report, USD traders are also waiting for the US consumption, income, and PCE deflator data. If the data from those reports show any sign of weakness, the euro could potentially gain against the greenback.
Part of the euro’s weakness came from the upsetting German inflation data that failed to reach analysts’ forecasts.
The German inflation rate data for August was released earlier in London trading. The report showed 1.0% compared to its previous 1.1% last July.