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Forex - EUR/USD little changed after French, German GDP

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Investing.com -

Investing.com - The euro was steady near recent lows against the dollar on Thursday after data showed that growth in the French economy stalled in the first three months of the year but growth in Germany beat forecasts.

EUR/USD was trading at 1.3715, not far from the five-week trough of 1.3688 reached on Tuesday.

The pair was likely to find support at 1.3688 and resistance at 1.3750.

Official data showed that French gross domestic product was flat in the first quarter, disappointing expectations for growth of 0.2%, as consumer spending slumped.

At the same time, data showed that the euro zone's largest economy expanded 0.8% in the three months to March, beating expectations for 0.7%. The annual rate of growth in Germany rose by 2.5%, ahead of expectations for 2.2%.

The euro zone was to release preliminary data on first quarter growth later in the session, as well as revised data on consumer price inflation for April.

The single currency remained under pressure amid heightened expectations that the European Central Bank could ease monetary policy as soon as next month, to stop inflation in the region from falling too low.

The euro was close to two-and-a-half month lows against the yen, with EUR/JPY at 139.77.

Earlier Thursday, data showed that Japan's GDP rose 1.5% in the first quarter, bringing the annual rate of growth to 5.9%. The strong growth was attributed to an increase in consumer spending ahead of a sales tax increase that came into effect on April 1.

Elsewhere, the dollar pushed higher against the yen, with USD/JPY trading at 101.94, after briefly touching lows of 101.65 following the release of the GDP data.

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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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