Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar found some support overnight against the euro after economic data out of Germany painted not so rosy future. The European Union’s largest economy cooled down in 2018.
The benchmark EUR/USD Forex market was weaker. The dollar rose to a five day high after the economic data release. This market was trading at $1.141 after the data. In mid-morning trade, euro retraced some of its losses against the dollar. This Forex market was last trading at $1.1385.
Looking at the benchmark GBP/USD Forex market, after U.K. Prime Minister Teresa May managed to only garner 200 some votes while losing her bid for a smooth Brexit deal, the British pound shed over one percent to trade at $1.272.
Forex Traders support the Dollar after Economic Data
Growth in Germany slowed to 1.5 percent in 2018. This is official government data and was released on Tuesday. That was the slowest rate of gross domestic product growth in five years. Traders are increasingly worried abut overall global growth due to trade wars fueled by U.S. President Donald Trump.
The German economic growth was in line with market expectations. However the weak GDP growth added to mounting worries about whether the European Central Bank will raise interest rates this year.
The USD did give back some gains. This comes after data out of the U.S. Labor Department showed that producer prices fell in December. This was the largest drop in better than two years. This points to benign U.S. inflation.
