Euro Steadies Slightly, But Stays Pressured by ECB Statement
Euro showed slight increase against US dollar today after considerable losses on Thursday. Euro/dollar pair is trading at 1.1646, having gained 0.03%. The ECB rate statement and press conference of Mario Draghi weighed negatively on the euro, which dropped 0.07%.
The ECB left the main refinancing rate is held at 0.00%, marginal lending facility rate at 0.25%, deposit facility rate at -0.40%. The ECB also reiterated that it plans to keep rates at current levels, "at least until the end of the summer of 2019". ECB President Mario Draghi reiterated that the asset purchase target will be lowered to EUR 10B per month after September. The program will end after December.
Data on the France’s GDP did not support the single currency. Gross domestic product grew by 0.2% in the second quarter, at the same rate as in the first quarter, although economists had expected an increase of 0.3%. It marked the lowest gain since Q3 in 2016. French consumer spending fell to 0.1%, short of the forecast of 0.6%.
The US will release Q2 GDP report today. Economist expect growth of 4.1%. That would be more than twice the 2.0% expansion seen in the first three months of the year and its strongest since the 5.2% reading in the third quarter of 2014.