Investing.com - The euro pushed higher against the dollar on Tuesday, but gains were held in check after third quarter growth data from China added to concerns over the outlook for the global economy.
EUR/USD was up 0.19% to 1.2822, not far from a session high of 1.2840, from 1.2799 late Monday.
China’s economy grew at an annual rate of 7.3% in the three months to September, slightly higher than the 7.2% forecast by economists, but slowing from 7.5% in the second quarter.
It was the slowest rate of growth since the first quarter of 2009, in the midst of the global financial crisis.
The slowdown fuelled fears that China will miss its annual growth target of 7.5% and added to speculation that the government will need to roll out fresh stimulus measures to avert a sharper slowdown.
The weak data also added to concerns that weaker global growth could act as a drag on the U.S. economy, dampening dollar demand.
Concerns over the stagnating euro zone economy continued to weigh on the single currency. Germany’s Bundesbank said Monday that the country’s economy barely grew in the third quarter, as industrial output slowed and business sentiment deteriorated.
In its monthly report the German central bank said that while the euro zone’s largest economy was unlikely to enter a recession the economic outlook for the fourth quarter was cautious.
Elsewhere, the single currency was lower against the safe haven yen, with EUR/JPY sliding 0.23% to 136.59.