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Euro climbs toward 1.1480 as Eurozone growth data outshine forecasts

EUR/USD moved from a daily low near 1.1437 back to above 1.1450 after Eurostat reported stronger second-quarter GDP and improving consumer confidence, even as unemployment rose.

Reported · Written up by our desk · Major Pairs

The euro retraced earlier losses against the US dollar on Wednesday, with EUR/USD returning to just above 1.1450 after trading as low as 1.1437, according to FXStreet.

FXStreet said the move was supported by brighter Eurozone data, including Eurostat preliminary figures showing the euro area economy grew 0.4% in the second quarter, reversing a 0.2% contraction in the prior quarter, and beating expectations for 0.2% growth.

The year-on-year growth rate jumped to 1.0% from 0.3% in the previous quarter, double the 0.5% forecast, while the European Commission’s July consumer confidence reading improved to -15.9 from -17.7. At the same time, the unemployment rate edged up to 6.3% from 6.2% expected for June.

FXStreet noted the euro’s gains came despite an offset from risk aversion linked to renewed US and Iran hostilities after a three-day truce, which pushed oil prices higher and helped support the dollar following the FOMC meeting. It also cited the Fed’s decision to leave rates unchanged and the lack of forward guidance from Chairman Kevin Warsh as a factor behind dollar demand.

Latest closeEUR/USD 1.147 ▲0.9%

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