The Euro US Dollar (EUR/USD) exchange rate has been mixed for much of this morning’s session as the latest Eurozone GDP figures have shown that the bloc’s economy expanded during Q2.
At the time of writing the EUR/USD pairing are trending around the $1.1773 level as the US Dollar finds itself supported on the back off a risk-off mood.
Euro (EUR) Edges Higher on Preliminary Eurozone GDP Data
The Euro had edged higher against the US Dollar this morning as the latest GDP estimates from the Eurozone have shown the economy rebounded by 2% in the second quarter of the year.
Analysts at Reuters commented on the latest preliminary figures, saying:
‘The [Eurozone] economy grew 2% in the second quarter, the European Union statistics office said on Tuesday, confirming its earlier reading as the easing of coronavirus restrictions spurred economic activity after a brief recession.’
‘The healthy 2% increase of gross domestic product (GDP) compared to the previous quarter was paired with a 13.6% rise from last year, when the [Eurozone] economy suffered the worst phase of the pandemic.’
The Euro remains jittery however on the back of a mixed market mood which continues to support the appeal of the safe-haven US Dollar.
US Dollar (USD) Clings to Gains on Risk-Off Trade
The US Dollar is clinging to any major gains this morning on the back of a mixed market mood and speculation that the Federal Reserve could taper their bond-buying programme sooner than expected.
However, a strengthening Euro is beginning to limit the appeal of USD exchange rates heading into the afternoon.
US Dollar investors will be looking towards the latest US retail sales this afternoon to reignite the appeal for the ‘Greenback’.
Though with retail sales forecast to have fallen -0.2% during July the US Dollar could suffer for the rest of the day.
Euro US Dollar Exchange Rate Outlook: Eurozone Inflation Rate in Focus
For Euro traders, tomorrow will see the release of the latest inflation rate figures from the Eurozone for July.
If inflation rises to 2.2% as forecast EUR exchange rates could see themselves pushing higher against the majors.
For much of tomorrow US Dollar investors will be focusing on the global market mood to drive movement in the ‘Greenback’.
Tomorrow evening’s Federal Open Market Committee (FOMC) minutes will also be eyed by investors overnight.