News Column

Euro Slides After German GDP Data

August 13, 2014

OTTAWA (Alliance News) - The European currency weakened against its key counterparts ahead of European session on Thursday after data showed that German economy contracted more than expected in the second quarter.

Data from the Destatis showed that the German gross domestic product fell 0.2% sequentially, after expanding 0.7% in the first quarter.

This was the first decline since the first quarter of 2013. GDP was forecast to drop marginally by 0.1%.

The euro fell to a 6-day low of 1.2124 against the Swiss franc. At yesterday's close, the euro was trading at 1.2126 against the franc.

The euro, which closed yesterday's deals at 1.4585 against the Canadian dollar, slipped to 1.4571. This may be compared to an early high of 1.4591.

Against the US dollar, the pound and the yen, the euro edged down to 1.3347, 0.7999 and 136.80 from early highs of 1.3367, 0.8012 and 137.13, respectively.

If the euro extends its downtrend, it is likely to find support around 1.331 against the greenback, 0.78 against the pound, 1.21 against the franc, 135.65 against the yen and 1.450 against the loonie.

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Source: Alliance News

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