EUR/USD Shed Losses and Recovers 1.05000 After Release of US GDP Figures
Pair Gets Off Low Point After US Report
The US dollar left the realm of low figures and gave momentum to the EUR/USD currency pair to move past the 1.0500 area after some unexpected results surfaced in the American calendar.
The EUR/USD currency pair is now trying some lukewarm recovery following the first set of revisions to be released on the US GDP and which reveals that the country’s economy should have reached the 1.4% level on a yearly review during the first quarter of the year.
EUR/USD price chart. Source TradingView
However, the pair’s poor performance seems to be unchanged even with the presence of a stronger US dollar, while bond yields on either side have returned the pessimism of the market that was there in the first place and have brought it to positive spheres.
In the European calendar, initial sets of inflation figures from Germany took note of the consumer price index that was observed to rise by 7.4% year-on-year to April as well as 0.8% in contrast with what was obtained in the month of March.
Actions to Watch Out for in the Euro
The price action around the EUR/USD pair indicates more deterioration, and it has been revisited beneath the 1.0500 level for the first time since 2017. The pair’s outlook is still in the direction of bears as it is always responding to the dynamics around the US dollar, the political atmosphere, and the divergence in the policies and results of both the Federal Reserve and the European Central Bank.
Flash shows of strength seen in the Euro, for now, might have been reinforced by suggestions that the European Central Bank might increase interest rates at any moment between June and July, while it also gains a lot of support from the yields in Germany, elevated inflation rates, and a good economic recovery momentum in the Eurozone.
Major Events to Expect in the Eurozone
The release of the European Central Bank’s 2021 yearly report, consumer confidence report, sentiments on the economy, Germany’s inflation rate report, Q1 GDP rate from the EMU, and the EMU’s inflation rates are scheduled for Friday.
Important issues still remaining on the boiler include an asymmetric recovery of the economy after the COVID pandemic in the Eurozone. There are also louder speculations that the ECB monetary policy would be implemented towards the end of the year.