Euro strengthened to intraday high as dollar weighs PBoC's devaluation during this week and leaves the battlefield open for its European counterparts. Euro traded 0.29% higher at $1.1180, only 30 pips from 1-month high. Pair favoured the euro during the London session on Friday, climbing to daily highs as the September's rate-hike of the Federal Reserve seems questionable due to the latest development of Chinese currency.
After the fastest expansion in four years during the first quarter, Euro zone GDP eased somewhat in the second quarter, numbers out on Friday showed. Second quarter GDP data for the euro zone came in lower than expected as France and Germany - Europe's top economies - posted non-stellar data.
Joint GDP data of all 19 members of the euro area saw a 0.3% expansion quarter-on-quarter during the second three months of 2015. Analysts had expected 0.4% in the second quarter, while the previous quarter experienced a four-year high, when the euro zone economy rose 0.4%, the highest since the first quarter of 2011 which saw a 0.8% increase.
France showed a disappointing performance during the second quarter as the economy stagnated on a quarterly basis, according to the National Institute for Statistics and Economic Studies. The French economy posted 0.0% growth during the second quarter, compared to the 0.7% growth in the first quarter and expectations of a 0.2% increase.
Germany provided GDP data as well, with the nation's statistical office reporting that the economy expanded 0.4% during the second quarter, below analysts' estimates of a 0.5% increase.
