The Euro had to retreat. Overview for 14.08.2020

The major currency pair is falling on Friday after the Euro Area reported on the GDP.

EURUSD is slightly retreating on Friday afternoon. The current quote for the instrument is 1.1790.

The statistics published in the afternoon weren’t too good. So, the preliminary report on the European GDP in the second quarter of 2020 showed -12.1% q/q, the same as expected. On YoY, the indicator showed -9.0% and the good news is that the expected reading implied -15.0%.

The Trade Balance of the Euro Zone in June was €17.1B, which is worse than expected. 

Investors hope that the macroeconomic statistics will show some hints at improvements of the stimulus package worth a huge pile of money. However, the data is pretty mixed so far: the time is moving on but there are no clear signals showing stability. Hence, they are selling the Euro. 

Now investors’ attention is switching to the data to be published by the USA in the evening, such as the Retail Sales and the Industrial Production in July, which might be the latest indication at the state of the American economy. Be sure that the USD will be very sensitive to the above-mentioned reports.