Euro Falls Despite Positive German GfK Data as US GDP Beats Estimates

The euro fell against the dollar for the third consecutive session despite the release of upbeat consumer data from Germany amid weak investor sentiment. The EUR/USD currency pair later extended its losses after the release of upbeat US macro reports, which boosted the greenback at the euro’s expense.
The EUR/USD currency pair rose to a high of 1.1827 in the Asian market before dropping to a low of 1.1791 in the American market but was off these lows at the time of writing.
The currency pair initially headed higher, boosted by the dollar’s overall weakness as tracked by the US Dollar Index. However, this did not last, and the pair started heading lower amid shifting investor preferences. The release of the upbeat German GfK consumer confidence report for April, which came in at -6.2 versus the expected -11.9 print, had a minimal impact on the euro. The mixed French manufacturing business climate index for March released by Insee barely moved the pair. The mixed Eurozone M3 Money supply aggregates released by the European Central Bank also did not help the pair.
The fibre fell to its daily lows after the release of the upbeat US Q4 2020 GDP report by the Bureau of Economic Analysis. The upbeat US initial jobless claims report released by the Department of Labor also drove the pair lower, after coming in at 684,000 versus the expected 730,000.
The currency pair’s future performance is likely to be affected by tomorrow’s German IFO data and US dollar dynamics.
The EUR/USD currency pair was trading at 1.1799 at 14:19 GMT, having fallen from a high of 1.1827. The EUR/JPY currency pair was trading at 128.74 after rising from a low of 128.51.
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Original from: www.earnforex.com