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Dollar slips, euro edges higher after GDP report

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Investing.com -

Investing.com - The dollar slipped lower against a basket of other major currencies on Thursday, while the euro was not far from nine month lows after data showed that the euro zone economy stagnated in the second quarter.

EUR/USD was up 0.10% to 1.3376, off highs of 1.3396 reached earlier in the session.

The euro edged higher after preliminary data showed the euro area economy failed to grow in the three months to June. Economists had expected a small expansion of 0.1%.

Germany's economy shrank by 0.2% in the three month to June, the first drop since 2012, while French gross domestic product was flat, the second consecutive quarter of stagnation.

The weak data indicated that the economic recovery in the euro area is losing momentum, adding to pressure on the European Central Bank to do more to shore up growth after it cut rates to record lows in June.

The dollar was steady against the yen, with USD/JPY at 102.44, but slipped against the Swiss franc, with USD/CHF sliding 0.14% to 0.9061.

The pound was at four month lows, with GBP/USD at 1.6684.

Sterling remained under pressure after the Bank of England cut its wage growth forecast for this year in half on Wednesday and said that the rate of pay growth would be a key factor in determining how quickly interest rates will rise.

The New Zealand dollar rose to one week highs, with NZD/USD up 0.50% to 0.8499 after official data showed that retail sales rose more strongly than expected in the second quarter.

AUD/USD was up 0.13% to 0.9316, while USD/CAD slid 0.19% to almost two-week lows of 1.0892.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, eased 0.09% to 81.59.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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