Investing.com - The euro trimmed gains against the other major currencies on Tuesday, after official data showed that the euro zone economy contracted in the second quarter, but losses were limited by hopes that world central banks will act to spur growth.
During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD up 0.24% to 1.2361, off a session high of 1.2386.
Eurostat said that the euro zone’s gross domestic product contracted by 0.2% in the three months to June, in line with expectations, bringing the annualized rate of contraction to 0.4%.
The euro pushed higher earlier after official data showed that Germany’s economy expanded by 0.3% in the second quarter, slightly better than expectations for 0.2% growth.
France’s economy stagnated in the second quarter, beating expectations for a 0.1% contraction.
Meanwhile, the ZEW Centre for Economic Research said that its index of German economic sentiment came in at minus 25.5 for August; down from July’s reading of minus 19.6 and defying expectations for a reading of minus 19.3.
A separate report showed that industrial production in the euro zone declined 0.6% in June, slightly less than expectations for a 0.7% drop.
The single currency was also higher against the pound, with EUR/GBP up 0.12% to 0.7871.
In the U.K., official data showing that consumer inflation rose unexpectedly in July dampened expectations for near-term quantitative easing by the Bank of England.
The Office for National Statistics said the rate of consumer price inflation accelerated to a seasonally adjusted 2.6% in July from 2.4% the previous month. Analysts had expected CPI to ease slightly to 2.3%.
The euro was higher against the yen, with EUR/JPY up 0.53% to 97.08, down from the session high of 97.31.
The minutes of the Bank of Japan’s August meeting released earlier Tuesday indicated that policymakers have not ruled out further stimulus measures to bolster growth.
The euro was steady against the Swiss franc, with EUR/CHF unchanged at 1.2010.
In Switzerland, official data showed that producer price inflation declined 0.3% in July, against expectations for a 0.2% dip.
The shared currency clung to gains against the Australian, Canadian and New Zealand dollars, with EUR/AUD easing up 0.11% to 1.1735, EUR/CAD up 0.24% to trade at 1.2271 and EUR/NZD rising 0.16% to hit 1.5267.
Retail sales in New Zealand rose far more than expected in the second quarter official data showed earlier, climbing 1.5%, more than doubling expectations for a 0.7% increase.
Later Tuesday, the U.S. was to publish official data on retail sales and producer price inflation.
During European late morning trade, the euro was higher against the U.S. dollar, with EUR/USD up 0.24% to 1.2361, off a session high of 1.2386.
Eurostat said that the euro zone’s gross domestic product contracted by 0.2% in the three months to June, in line with expectations, bringing the annualized rate of contraction to 0.4%.
The euro pushed higher earlier after official data showed that Germany’s economy expanded by 0.3% in the second quarter, slightly better than expectations for 0.2% growth.
France’s economy stagnated in the second quarter, beating expectations for a 0.1% contraction.
Meanwhile, the ZEW Centre for Economic Research said that its index of German economic sentiment came in at minus 25.5 for August; down from July’s reading of minus 19.6 and defying expectations for a reading of minus 19.3.
A separate report showed that industrial production in the euro zone declined 0.6% in June, slightly less than expectations for a 0.7% drop.
The single currency was also higher against the pound, with EUR/GBP up 0.12% to 0.7871.
In the U.K., official data showing that consumer inflation rose unexpectedly in July dampened expectations for near-term quantitative easing by the Bank of England.
The Office for National Statistics said the rate of consumer price inflation accelerated to a seasonally adjusted 2.6% in July from 2.4% the previous month. Analysts had expected CPI to ease slightly to 2.3%.
The euro was higher against the yen, with EUR/JPY up 0.53% to 97.08, down from the session high of 97.31.
The minutes of the Bank of Japan’s August meeting released earlier Tuesday indicated that policymakers have not ruled out further stimulus measures to bolster growth.
The euro was steady against the Swiss franc, with EUR/CHF unchanged at 1.2010.
In Switzerland, official data showed that producer price inflation declined 0.3% in July, against expectations for a 0.2% dip.
The shared currency clung to gains against the Australian, Canadian and New Zealand dollars, with EUR/AUD easing up 0.11% to 1.1735, EUR/CAD up 0.24% to trade at 1.2271 and EUR/NZD rising 0.16% to hit 1.5267.
Retail sales in New Zealand rose far more than expected in the second quarter official data showed earlier, climbing 1.5%, more than doubling expectations for a 0.7% increase.
Later Tuesday, the U.S. was to publish official data on retail sales and producer price inflation.