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Dollar steady, euro near 9-month lows

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Investing.com -

Investing.com - The dollar was steady against the other major currencies on Thursday, while the euro was close to nine month lows after data showed that economic growth in Germany contracted in the second quarter and growth in France stagnated.

EUR/USD edged down 0.07% to 1.3353, not far from last Wednesday's nine-month lows of 1.3332.

Germany's gross domestic product shrank by 0.2% in the three month to June, the first drop since 2012. Economists had forecasts a contraction of 0.1%. First quarter growth was also revised down to 0.7% from 0.8% previously.

Earlier Thursday official data showed that French GDP was flat in the second quarter, the second consecutive quarter of stagnation. Economists had expected an expansion of 0.1%.

The weaker than expected data added to concerns that the economic recovery in the euro area is losing momentum, adding to pressure on the European Central Bank to do more to bolster growth after it cut rates to record lows in June.

The euro zone was to release data on economic growth across the wider currency bloc later in the session, as well as revised data on consumer inflation.

The dollar was flat against the yen and the Swiss franc, with USD/JPY at 102.42 and USD/CHF at 0.9073.

The pound slumped to four month lows, with GBP/USD slipping 0.10% to 1.6671.

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 0.44% to 0.8494 after official data showed that retail sales rose more strongly than expected in the second quarter.

AUD/USD was little changed at 0.9309, while USD/CAD slid 0.09% to 1.0903.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was steady at 81.69.

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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.

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