EUR/USD has posted small losses in the Thursday session. Currently, the pair is trading at 1.1372, up 0.24% on the day. On the release front, the German Wholesale Price Index dropped to 0.0%, short of the estimate of 0.5%. The eurozone trade surplus narrowed to EUR 16.7 billion, missing the estimate of EUR 17.0 billion. In the U.S, there are a host of key indicators. Building Permits and Housing Starts are both expected to rise, with estimates of 1.31 million and 1.27 million, respectively. The Philly Fed Manufacturing Index is forecast to drop to 21.9 points and unemployment claims is expected to edge up to 215 thousand. On Friday, the eurozone releases Final CPI and the U.S publishes Preliminary UoM Consumer Sentiment.
The euro has endured a rough August, losing 2.7 percent in that time. Weak growth in the eurozone and trade tensions with the U.S have affected investor sentiment, and the euro has struggled as a result, trading this week at 14-month lows against a strong U.S dollar. However, the euro’s fortunes could improve, with news that the U.S and China will be holding trade talks. The negotiations will be handled by low-level officials and are being billed as ‘talks about talks’. Still, the markets are hopeful that the two sides are talking rather than slapping tariffs against each other.
Eurozone GDP in the second quarter managed to beat the estimate, but investors were not impressed. The economy posted a modest gain of 0.4% for a second straight quarter. The estimate stood at 0.3%. Concern about the eurozone economy was underscored by another negative reading from the German Economic Sentiment. The indicator gained ground in August but still remains in negative territory, with a reading of -13.7 points. This marked a fourth straight decline.
