Forex
Home›Forex›Major Pairs›EUR/USD consolidates after eurozone GDP beats expectat…
EUR/USD consolidates after eurozone GDP beats expectations
Brown Brothers Harriman said the stronger-than-expected 0.4% quarter-on-quarter eurozone Q2 GDP and above-target inflation bolster expectations for an ECB rate hike in September.
EUR/USD is consolidating after a prior rally, with Brown Brothers Harriman attributing the move to stronger-than-expected eurozone growth and reinforcing rate-hike expectations, according to FXStreet.
BBH’s Elias Haddad said eurozone Q2 real GDP growth came in at 0.4% quarter-on-quarter versus 0.0% in Q1, with improvements broad-based across major economies.
The newsletter notes that recovery in eurozone activity and above-target inflation support expectations for a European Central Bank rate hike in September, though Haddad cautioned that market pricing may limit upside for the euro.
Even so, Haddad said existing market pricing constraints could cap how much EUR/USD can run, while traders continue to watch the next set of data, including preliminary US second-quarter GDP readings.
Latest closeEUR/USD 1.147 ▲0.9%