EUR/USD shows timid reaction to Eurozone GDP

By FXstreet.com | August 14, 2014 AAA

FXStreet (Córdoba) - The EUR/USD barely reacted to the latest string of Eurozone data came in mainly in line with expectations.



The Eurozone economy failed to grow during the second quarter, falling short of +0.1% forecast. Meanwhile, CPI fell 0.7% versus a drop of 0.6% expected in July but it grew 0.4% YoY, as expected.



The EUR/USD edged slightly higher to a daily high of 1.3371 after data, but remains broadly unchanged. At time of writing, the pair is trading at 1.3360, flat on the day.



Earlier on the day, the two biggest economies of the bloc, Germany and France, reported weaker-than-expected GDP, with German economy contracting (-0.2%) in the 2Q for the first time in over a year. However, the euro has remained pretty resilient, hovering above 1.3350.



EUR/USD technical outlook



"The consolidation pattern above 1.3331 is still underway and one more upswing to 1.3400 cannot be ruled out, but the overall outlook on the senior frames remains negative, for a slide towards 1.3220", said Stoyan Mihaylov, analyst at Deltastock.com.



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