Data released Friday showed US economic growth picking up to 2.60% during the second quarter, matching economist expectations for the period. However, the pace of growth during the first quarter was revised down to 1.20%. Second quarter labour costs also grew less than forecast, reigniting concerns that inflation will likely remain low for the foreseeable future.
Accentuating the bearish mode was President Donald Trump’s decision to replace his White House Chief of Staff, Reince Priebus with retired General John Kelly, in a major shake-up of his core team. In the meantime, the common currency has gained close to 3.00% against the greenback this month alone, pushing the EURUSD to just below 1.1730. The short-term trend in the currency remains overwhelmingly bullish, with any close above last week’s high of 1.1780 potentially unlocking the next leg of upward momentum.