Forex Market News – Slower China growth weighs on euro

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Euro was lower in the European trading session with risk appetite lower going into the weekend. EURUSD began to decline after weaker than expected Chinese GDP earlier in the Asian session, and opened in Europe at 1.3171 and remained above 1.3140 most of the session until US CPI data late in the session pushed the euro lower to 1.3121.

 

U.S. consumer prices rose 0.3 percent in March, while core CPI was up 0.2 percent as expected. Euro zone CPI numbers are due next week on Tuesday.

 

GBPUSD was mixed today, first opening at 1.5946 and falling to 1.5908 following the release of higher than expected UK PPI figures. Then cable rose to a session high of 1.5965 before falling again.

 

USDJPY did little in European trading, trading between 80.83 and 81.04. Despite risk aversion in the markets today, the safe haven yen was unable to gain ground, possibly due to speculation of further Bank of Japan easing at the next policy meeting.

 

EURJPY traded between lows of 106.30 and highs of 106.74.

 

USDCHF was mostly flat after opening the European session at 0.9122, then shot up to 0.9158 after the US CPI data.

 

The Australian dollar was generally underperforming today due to the disappointing China GDP report, which hit commodity prices. China is a major export partner for Australia and the aussie is a commodity-linked currency.  AUDUSD began to decline after the Chinese data from 1.0450 to as low as 1.0368 in early European hours, before steadying and bouncing briefly to 1.0425.