The
euro held its gains despite the release of weak economic data from the euro
zone, returning to the rise today against the dollar after hitting a four-week
high during yesterday’s trading session.
The
EURUSD pair hit today's high at 1.1099 and opened today at 1.1076, while
yesterday it recorded the highest level in four weeks at 1.1115.
Data
showed that the euro-zone economy grew at a modest pace in the third quarter,
as the weakening trade performance, caused by the US-China trade war, and fall
in retail sales weighed on the growth.
The
19-nation economy expanded by 0.2 percent in the third quarter, unchanged from the
second quarter growth figures.
Retail
sales in the euro zone fell in October by 0.6%, the largest drop since the
beginning of 2019, from the previous reading 0.2% drop. On the annual level, it
rose modestly by 1.4% and the previous reading was 2.6% up.
The
data contributed significantly to the negative outlook for the eurozone facing
threats and uncertainty about Brexit as well as growing global trade tensions.
The
United States has decided to sign the first phase of the trade deal to end its
war with China in October, but the two countries are still at odds over
details.
Britain
was also due to leave the EU at the end of October, but it was extended until
the end of January as it did not reach an agreement with the EU for a safe
exit.
Germany,
the largest economy in the euro zone, and Italy, the third largest, grew by
0.1% in the third quarter, while France, the second largest, grew by 0.3%.
The report also
showed that employment growth in the euro zone saw a slowdown in the third
quarter to 0.1% from 0.2% in the second quarter. Year-on-year growth slowed to
0.9% from 1.2% previously.