EUR/USD yawns as GDP slides

It has been a quiet week for EUR/USD and the pair shrugged off a double-digit decline in Eurozone GDP on Friday. Currently, EUR/USD is trading at 1.1806, down 0.06% on the day.

Eurozone economy savaged by Covid-19

There was grim news on the economic front on Friday, as Eurozone GDP plunged 12.1% in the second quarter, its worst quarterly decline on record. The sharp decline reflected the strict lockdown measures across much of Europe, which brought large swathes of the economy to a standstill. This second estimate confirmed the initial release, so the market reaction was muted. Still, it’s clear that the eurozone remains in deep economic trouble, and further soft economic numbers could put downward pressure on EUR/USD, which has looked strong of late, with the pair flirting with the 1.19 level earlier in August.

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EUR/USD Technical

EUR/USD has been flat in the Asian and European sessions.

  • 1.1903 is the next resistance line, followed by 1.2019
  • 1.1683 is providing support. Below, there is support at 1.1579
  • EUR/USD continues to put pressure on the 10-day MA line. If the pair breaks below, it would be a bearish signal for EUR/USD

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Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.