Euro extends losses towards 1.1000 amid German GDP downgrade

Euro extends losses towards 1.1000 amid German GDP downgrade

11 Sep 2019 03:25 PM
 

The euro extends losses below 1.1050 amid a downgrade to the German 2019 GDP growth forecast. Further, broad-based US dollar strength on trade optimism also added to the downside pressure. 

The single currency lacked any firm directional bias on Tuesday and seesawed between tepid gains/minor losses, well within the previous session's broader trading range. The shared currency remained supported by the fact that the German government is considering fiscal stimulus to boost the economy without breaching national spending rule.

However, speculations over additional monetary easing by the European Central Bank (ECB) held investors from placing any aggressive bullish bets.

Meanwhile, the recent optimism over the resumption of the US-China trade talks continued driving the U.S. Treasury bond yields higher and provided a minor lift to the U.S. Dollar, which further collaborated towards capping the occasional bullish attempts.