The major currency pair is keeping balance after some mixed statistics were published, but it may not last long.
EURUSD is doing a good job of keeping balance on Tuesday afternoon and holding its positions after the Euro Area reported on the GDP. The current quote for the instrument is 1.1720.
Well, there were a lot of important macroeconomic numbers from Europe today and all of them were rather mixed. The preliminary estimation of the GDP in the second quarter showed +0.3% q/q against the expected reading of +0.4% q/q, the same as in the first one.
The Unemployment Rate fell from 8.4% in May to 8.3% this month. The Core CPI Flash Estimate expanded up to 1.1% y/y after being 0.9% y/y earlier and against the expected reading of 1.0% y/y. The CPI Flash Estimate was 2.1% y/y in June, which is also better than the month before.
It’s quite surprising that the Euro Area’s economy is no longer receiving a lot of support from the QE program. The program was extended by the ECB until the end of 2018, but even now it can be easily seen that it is not as efficient as it was. The actual inflation readings are good, but the indicator may fell below 2.0% in August again due to some mixed signals from the tertiary industry.
The statistics from the Euro Area will surely influence the market for several more hours, but then investors will switch to the US Federal Reserve meeting that is scheduled to start today.