EUR/USD trims gains despite upbeat Eurozone GDP, employment data
EUR/USD is posting marginal gains on Friday, trading near 1.1650 at the time of writing, after being rejected at 1.1675 during the early European session. Downside attempts, however, remain limited so far, with markets bracing for a quarter-point interest rate cut by the Federal Reserve next week.
Eurozone economy grew at a 0.3% rate in Q3, according to Gross Domestic Product (GDP) data released earlier on the day. These figures beat the 0.2% growth estimated in the previous reading and the 0.1% expansion seen in the previous quarter. The yearly GDP has been left unrevised, at 1.4%, down from the previous quarter's 1.5%.
Beyond that, Eurostat's data revealed that employment growth accelerated to 0.2% in the three months to September, from 0.1% in Q2, and beat expectations of a 0.1% growth. Year-on-year, Eurozone employment grew 0.6%, following a 0.5% increase in the previous quarter and market expectations of a steady 0.5% growth. The impact of these figures on the Euro has been marginal.
The focus now shifts to the US Personal Consumption Expenditures (PCE) Price Index, the last inflation gauge ahead of next week's Fed monetary policy meeting. PCE data is expected to confirm that inflation remains above the Fed's 2% target, although it is unlikely to alter the view that the Fed ease monetary policy further next week.
Source : Fxstreet.com
