Euro (EUR) Price Latest: Euro Area Q2 GDP Downgraded, EUR/USD Probing 1.0700

Euro Area Q2 GDP growth revised down to just 0.1%, barely expanding over last 9 months.
EUR/USD breaks below 200-day SMA, eyes support at 1.0635 and 1.0615.
EUR/JPY nears 2008 highs around 160, but Japanese intervention could spark sharp drop.
US dollar remains bid, aided by yields and Euro weakness. CME Fed futures point to mid-2024 for first rate cut.
DailyFX provides forex news and analysis on trends influencing currency markets.

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Relevant topic timeline:

8/30/2023

Euro Breaking News: Stubborn German Inflation, US ADP and GDP Lift EUR/USD

German inflation beats forecasts, complicating the ECB's task, while US labor data eases and GDP is revised lower, causing the dollar to weaken and the euro to strengthen.

8/31/2023

Disinflation and the Phillips curve

The outlook for the euro area remains uncertain as economic activity has slowed and indicators suggest weakness ahead, but the labor market remains resilient; a restrictive monetary policy is critical for bringing inflation back to the 2% target in a timely manner, and a data-dependent and robust approach to monetary policy is warranted due to the high level of uncertainty.

8/31/2023

Markets may have undone some of the ECB's work: Schnabel

Euro zone growth is weaker than predicted, but the need for more rate hikes by the European Central Bank is not automatically voided, according to ECB board member Isabel Schnabel, who raised concerns about investors undoing the ECB's past work and the decline in real risk-free rates counteracting efforts to bring inflation back to target.

9/7/2023

Eurozone Growth Slows to 0.1% in Q2 as High Inflation and Weak Exports Take Toll

The eurozone's GDP barely grew in the second quarter, with weak exports and sluggish domestic consumption contributing to worse-than-expected results.

9/9/2023

Dollar Extends Gains as US Growth Outperforms, Keeping Fed Hawkish Ahead of Key Inflation Data

The US dollar's strength in the foreign exchange market, along with discussions of de-dollarization, highlights the divergence between the US and other major economies. The Dollar Index is on an eight-week rally, reaching a record high in international payments, while the euro's share has declined to a record low. In the week ahead, the US CPI and the ECB meeting are expected to be major events, with the US showing signs of inflation and weaker demand, and the euro facing challenges amid stagnation and inflation. China's CPI and PPI have shown some improvement, but the focus will be on yuan loans and real sector data. The eurozone's focus will be on the possibility of a rate hike by the ECB and the release of July industrial production figures. Japan's household consumption continues to fall, and the country may experience a contraction in Q3. The UK will release employment data and GDP details, while Canada will see data on existing home sales and the CPI. Australia will release its August employment data, and Mexico's peso positions may continue to adjust due to the winding down of the currency forward hedging facility.

10/1/2023

US Dollar Rallies in Q3 on Hawkish Fed While Stocks Slide Late Despite Oil Price Gains; GBP and AUD Face Headwinds in Q4

The US Dollar performed well against major currencies in Q3 2023, driven by expectations of higher interest rates, while equities remained positive but showed signs of concern as the Fed adjusts policy; the outlook for GBP/USD, EUR/GBP, GBP/JPY and other currencies in Q4 is analyzed in depth.

10/3/2023

Dollar Rises as Strong Jobs Data and Hawkish Fed Lift Yields, Pressuring Stocks and Precious Metals

The US dollar strengthened on positive US economic news, higher bond yields, and hawkish comments from Federal Reserve officials, while the euro weakened due to dollar strength and hawkish comments from the European Central Bank.

10/4/2023

ECB Navigates Slowing Eurozone Economy and High Inflation with Further Rate Hikes Expected

The euro area is experiencing stagnated economic activity and weakening growth, leading the European Central Bank (ECB) to adjust its monetary policy by raising interest rates to combat inflation; however, uncertainties remain regarding the transmission of monetary policy and potential risks to economic growth.

Topics

Posted 9/7/2023, 10:42:53 AM

Euro (EUR) Price Latest: Euro Area Q2 GDP Downgraded, EUR/USD Probing 1.0700

Euro Area Q2 GDP growth revised down to just 0.1%, barely expanding over last 9 months.
EUR/USD breaks below 200-day SMA, eyes support at 1.0635 and 1.0615.
EUR/JPY nears 2008 highs around 160, but Japanese intervention could spark sharp drop.
US dollar remains bid, aided by yields and Euro weakness. CME Fed futures point to mid-2024 for first rate cut.
DailyFX provides forex news and analysis on trends influencing currency markets.

dailyfx.com

Relevant topic timeline:

8/30/2023

Euro Breaking News: Stubborn German Inflation, US ADP and GDP Lift EUR/USD

German inflation beats forecasts, complicating the ECB's task, while US labor data eases and GDP is revised lower, causing the dollar to weaken and the euro to strengthen.

8/31/2023

Disinflation and the Phillips curve

8/31/2023

Markets may have undone some of the ECB's work: Schnabel

9/7/2023

Eurozone Growth Slows to 0.1% in Q2 as High Inflation and Weak Exports Take Toll

The eurozone's GDP barely grew in the second quarter, with weak exports and sluggish domestic consumption contributing to worse-than-expected results.

9/9/2023

Dollar Extends Gains as US Growth Outperforms, Keeping Fed Hawkish Ahead of Key Inflation Data

10/1/2023

US Dollar Rallies in Q3 on Hawkish Fed While Stocks Slide Late Despite Oil Price Gains; GBP and AUD Face Headwinds in Q4

10/3/2023

Dollar Rises as Strong Jobs Data and Hawkish Fed Lift Yields, Pressuring Stocks and Precious Metals

10/4/2023

ECB Navigates Slowing Eurozone Economy and High Inflation with Further Rate Hikes Expected