Forex - EUR/USD, EUR/JPY Flows: Modest reaction on the EUR as German GDP falls as expected

 06:15 (GMT) 14 Aug

  [Forex Flows]

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EUR/USD, EUR/JPY Flows: Modest reaction on the EUR as German GDP falls as expected (0101-NGRH-C01)

Germany preliminary GDP (SA) slipped 0.1%q/q in the second quarter as market expected, though EUR/USD inched up a shade with stronger than expected figures on a non-SA basis as well as on calendar-adjusted basis. EUR/USD remains in the tight range of 1.1165/80 seen today. Market optimism following the tariffs delay announcement might be checked especially since markets have been disappointed more than a couple of times in terms of progress in trade talks in recent years. Focus might then revert back to weak growth data, from weak Chinese data overnight and now the GDP contraction in Germany. August 12 low at 1.1162 will be watched closely and if the euphoric risk mood fades, then there should be scope on the downside.
JPY has been broadly stronger in Asia, though might also be due to the overreaction in JPY pairs shortly after the tariffs delay announcement. EUR/JPY eased back below 119 in Asia and with a negative GDP print from Germany, the pair should not rise above the 118 handle.

Forex - EUR/USD, USD/JPY Flows: White House said to clarify Trump Huawei remarks

 17:18 (GMT) 09 Aug

 [Forex Flows]

A tweet from Fox Business News says that the White House is signaling that an earlier Trump comment on not doing business with Huawei refers only to the Federal Government, and that the Commerce Dep't process for special licenses is still going forward. This has seen equities and the USD partially recover. It is unclear whether the equity slide triggered the clarification. Trump was earlier clear that he was not eager for a deal with China and seems willing to test the tolerance of the equity market.

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