{"id":154289,"date":"2019-08-27T09:33:15","date_gmt":"2019-08-27T13:33:15","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=154289"},"modified":"2019-08-27T09:19:12","modified_gmt":"2019-08-27T13:19:12","slug":"eurusd-holds-despite-germanys-q2-economic-contraction","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/08\/eurusd-holds-despite-germanys-q2-economic-contraction\/","title":{"rendered":"EURUSD holds despite Germany\u2019s Q2 economic contraction"},"content":{"rendered":"
August 27, 2019<\/div>
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By Han Tan, Market Analyst, <\/strong>ForexTime<\/strong><\/a><\/p>\n

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The Euro is holding around the 1.11 level against the US Dollar, despite the announcement that Germany\u2019s GDP contracted by 0.1 percent in Q2, suggesting that markets had already largely priced in the gloomy economic data ahead of the release. With Germany\u2019s manufacturing and export\u00a0sectors showing their vulnerabilities to external headwinds, largely due to heightened US-China trade tensions, it highlights the prospects of\u00a0Europe\u2019s economic engine falling into a recession.<\/p>\n

Q2 GDP figures out of France and Italy over the coming days should give investors a better assessment over the broader state of the EU economy. Still, EURUSD is expected to continue its bias towards the downside, as long as the US-China trade conflict continues to take its toll on global demand, while Brexit risks and Italy\u2019s political uncertainties also add to the negativity surrounding the bloc\u2019s currency.<\/p>\n

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EURJPY set to break below 117 mark on risk aversion<\/strong><\/p>\n

EURJPY has broken past every support level on the way down since April, as the currency pair saw a relatively easy path towards the 117 level. The \u201cflight-to-safety\u201d mantra has resulted in substantial gains for the Japanese Yen against the Euro, with the palpable risk aversion in the markets implying that EURUSD is very likely to further explore its downside over the coming months.<\/p>\n

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Weakening Australian Dollar\u00a0offers Euro respectability among G10\u00a0<\/strong><\/p>\n

Still, the Euro has seen better year-to-date fortunes against the Australian Dollar. EURAUD has gained about 0.9 percent year-to-date, in contrast to EURUSD\u2019s drop of more than three percent and EURJPY\u2019s 6.7 percent decline so far this year. Australia\u2019s economic exposure to China is dampening AUD, allowing the Euro some measure of respectability among its G10 peers.<\/p>\n

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Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n<\/div>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Han Tan, Market Analyst, ForexTime The Euro is holding around the 1.11 level against the US Dollar, despite the announcement that Germany\u2019s GDP contracted by 0.1 percent in Q2, suggesting that markets had already largely priced in the gloomy economic data ahead of the release. With Germany\u2019s manufacturing and export\u00a0sectors showing their vulnerabilities to […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-154289","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=154289"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154289\/revisions"}],"predecessor-version":[{"id":154298,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/154289\/revisions\/154298"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=154289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=154289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=154289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}