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Forex - Euro near 9-month lows after German, French GDP data

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Investing.com -

Investing.com - The euro slid back towards nine month lows against the dollar on Thursday after data showed that Germany's economy contracted in the second quarter while growth in France stagnated.

EUR/USD dipped 0.06% to 1.3354, not far from last Wednesday's nine-month lows of 1.3332.

The pair was likely to find support at around the 1.3300 level and resistance at 1.3385.

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 single currency was little changed against the yen, with EUR/JPY at 136.92, staying above last Friday's eight-and-a-half month lows of 135.71.

Elsewhere, the dollar pushed higher against the yen, with USD/JPY easing up 0.09% to 102.51.

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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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