Disappointing German GDP growth leads to euro dip

As Germany announced 0.1 per cent gross domestic product (GDP) growth for the second quarter of the year, forex traders saw the euro fall back from a three-week high against the dollar.

It was down 0.4 per cent against the dollar at $1.4382 after reaching a pinnacle of $1.4477 yesterday (August 15th).

Commenting on the Franco-German summit today, Adam Cole, head of global FX strategy at RBC Capital Markets, told Reuters: "People are not expecting too much so the impact should be limited but I think there will be a negative bias for the euro."

Those involved in forex trading may also be interested to learn that the British pound slipped overnight as traders waited for the announcement of the July consumer price index in the UK.

Earlier today the Office for National Statistics revealed that this was 4.4 per cent, 0.1 per cent higher than the forecast amount and a 0.2 percentage point increase on the June data.

Posted by Chris Weaver