Euro Mixed After Eurozone GDP Data

The euro was trading mixed against its major counterparts in the early European session on Friday, after the release of Eurozone gross domestic product data for the third quarter, which showed slowest pace of growth in four years, matching preliminary estimate.

Data from Eurostat showed that Eurozone GDP rose 0.2 percent in the third quarter after rising 0.4 percent in the previous three months. The reading matched flash estimate.

On a year-on-year basis, the GDP growth was revised down to 1.6 percent following a 2.2 percent rise in the second quarter. The reading was originally reported as 1.7 percent.

Separate data showed that employment growth for the euro area has been confirmed in the third quarter.

Eurozone employment increased by 0.2 percent in the third quarter following a 0.4 percent rise in the preceding quarter.

The economy expanded 1.3 percent annually after logging a 1.5 percent growth in the second quarter.

European stocks bounced back after sharp losses the previous day following the arrest of chief financial officer of Chinese tech giant Huawei.

Investors drew some comfort from a firm dollar and a late Wall Street recovery overnight, helped by hopes that the U.S. Federal Reserve could pause its interest-rate hikes.

The focus remained on a key U.S jobs report due tonight, with economists expecting employment to increase by 205,000 jobs in November after an increase of 250,000 jobs in October. The jobless rate is expected to hold at 3.7 percent.

The currency showed mixed trading against its major opponents in the Asian session. While it rose against the pound and the yen, it held steady against the franc and the greenback.

The euro advanced to a 2-day high of 128.44 against the yen and held steady thereafter. The pair was valued at 128.14 when it ended deals on Thursday.

Data from the Ministry of Internal Affairs and Communications showed that Japan household spending fell 0.3 percent on year in October, coming in at 290,396 yen.

That missed expectations for an increase of 1.1 percent following the 1.6 percent decline in September.

The single currency pulled back to 1.1363 against the greenback, from a high of 1.1383 seen at 3:45 am ET. The euro is likely to find support around the 1.12 level.

Having climbed to a 2-day high of 0.8931 against the pound at 4:00 am ET, the euro reversed direction and retreated to 0.8902 following the data. The euro is seen finding support around the 0.88 area.

Survey data from the Bank of England showed that UK inflation expectations for the coming year rose to their highest level in five years.

Median expectations of the rate of inflation over the coming year were 3.2 percent, compared to 3.0 percent in August.

The euro reversed from an early low of 1.1284 against the franc, rising to 1.1303. If the euro rises further, 1.16 is possibly seen as its next resistance level.

Looking ahead, U.S. and Canadian jobs data for November, University of Michigan's preliminary consumer sentiment index for December, U.S. wholesale inventories and consumer credit for October are scheduled for release in the New York session.

At 12:00 pm ET, Federal Reserve Governor Lael Brainard will speak about financial stability at the Peterson Institute in Washington DC.

Euro vs US Dollar (FX:EURUSD)
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De Mar 2024 à Avr 2024