EUR/USD drifts lower from 2-week high even as Euro area GDP rises

Euro is seen pressured from a two week high on Friday amid a rebound in dollar overseas as hawkish comments from Fed officials created uncertainty of a near term rate cut. Boston Fed President Susan Collins said that it will likely be appropriate to keep policy rates at the current level for some time to balance the inflation and employment risks in this highly uncertain environment. Meanwhile, Atlanta Fed President Raphael Bostic on Wednesday and Cleveland Fed President Beth Hammack on Thursday also expressed a preference for holding rates steady. DXY is trading higher by 0.22% at 99.27.

Data from Euro zone docket however signaled positive growth. Gross domestic product logged 0.2 percent expansion, faster than the 0.1 percent growth seen in the second quarter. On a yearly basis, economic growth eased to 1.4 percent from 1.5 percent in the preceding quarter. The 1.4 percent was revised up from the earlier estimate of 1.3 percent. At the same time, the sequential GDP growth for the EU27 was left unrevised at 0.3 percent in the third quarter. Meanwhile, annual growth was revised to 1.6 percent from 1.5 percent. Data showed that euro area employment logged a steady growth of 0.1 percent sequentially in the third quarter. Year-on-year, growth in employment slowed to 0.5 percent from 0.6 percent. EUR/USD is currently quoting at $1.1630, down .22% on the day.

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