The EUR/USD currency pair today declined after the release of disappointing German CPI data by the Federal Statistical Office amid dovish comments from the European Central Bank. The currency pair’s decline was also triggered by the positive US GDP data released today, which exceeded market expectations.
The currency pair lost over 50 points at the height of its decline, as the US dollar gained against the euro.
The currency pair’s decline was triggered by the release of the German CPI data, which was recorded at an annualized figure of 1.6% in March as opposed to the expected 1.8% and the previous 2.0%. Other economic releases from the eurozone such as the economic sentiment indicator and the business climate indicator also did not meet expectations. Dovish comments from Klaas Knot, a member of the ECB Governing Council, did little to boost the euro.
The currency pair’s performance was also affected by the release of US GDP data by the Bureau of Economic Analysis, which indicated that the US economy expanded by 2.1% in the fourth quarter, versus the expected 2.0% and the previous quarter’s 1.9%. Further US data indicated that initial jobless claims for the week ending March 25 had risen to 258,000 versus the expected 247,000.
The currency pair’s future performance is likely to be affected by the German unemployment figures scheduled for release tomorrow.
The EUR/USD currency pair was trading at 1.0690 as at 17:48 GMT having declined from a high of 1.0769 prior to the release. The EUR/GBP pair was trading at 0.8569 having declined from a high of 0.8660 earlier today.
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