Despite news that showed that Germany's growth had bounced in the first quarter, it was not enough to jump start the Euro which traded close to a 1-week trough. The ongoing tension between China and the United States continues to cast a pall on financial markets as FX traders move toward the safety of safe haven currencies. The latest salvo from China has done little to assuage market jitters as it increases negative sentiment about the state of the global economy, the effect of which is being felt in the Eurozone.
As reported at 11;35 am (GMT) in London, the EUR/USD was trading lower at $1.1197, down 0.0854% and off the session low of $1.11949 while the high is a not too distant $1.11269. The EUR/GBP was trading at 0.8673 Pence, down 0.076% with the pair's range in today's trade between 0.86728 Pence and 0.86873 Pence. The EUR/JPY was trading at 122.4160 Yen, a loss of 0.3792% and off the session trough of 122.3380 Yen.
Aussie Lower on China Worries
China also reported disappointing retail sales figures for April, and industrial output was also lower. While analysts had expected to see the numbers move lower, it will worsen an already gloomy outlook for the Chinese economy. Analysts say that that will make the PMI data all the more important. As a result of today's data release, the AUD/USD hit a low of $0.6922, a level not seen since early January; currently, the pair is trading at $0.6916, down 0.3874%.