EUR/USD Remains Stable on Friday.
The major currency pair, EUR/USD, showed signs of stability on Friday, with the current exchange rate at 1.0710.
It was a challenging week marked by investor risk aversion, primarily due to uncertainties surrounding the Chinese and Eurozone economies. In such an atmosphere, the USD demonstrated resilience.
Revised data revealed that Eurozone GDP in Q2 grew less than anticipated, registering a 0.5% year-on-year increase, below the initial estimate of 0.6%. On a quarterly basis, the Eurozone’s economic expansion was a modest 0.1%, falling short of the projected 0.3% growth. Clearly, the European economic landscape faces significant challenges. Given these conditions, it’s highly unlikely that the ECB will opt for further interest rate hikes.
The weekly report on initial jobless claims in the US indicated a decline in the figure, dropping from 228,000 to 216,000. The forecast had suggested an increase to 235,000.
Today, there are no significant data releases from the US. Germany, on the other hand, will publish inflation data for August, where the CPI may have eased to 6.1% year-on-year from the previous 6.2%.
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