The Euro received a boost in yesterday’s trading session after the release of better than expected GDP figures from the Eurozone kept the notion alive that the bloc is well on its way to an economic recovery and the worst of the coronavirus damage is behind it.
GDP figures released to the market came in at -0.3%, well above analyst’s expectations for a figure of -0.6%, but the good news was slightly offset by an unexpected fall in Germany’s industrial output figures for April which May have prevented the Euro from gaining more ground on its US counterpart.
With no major economic news out from the Eurozone or the US today the Euro should remain fairly motionless, and Market traders will be very hesitant from taking any short positions against the US dollar as they await the latest CPI figures from the US which are due out tomorrow.
The CPI numbers are expected to weigh heavily on the US Federal Reserves mind and whether to lift interest rates sooner or later as the year unfolds.
From a technical point of view, the support line that formed yesterday has held up well and as mentioned earlier we expect little direction in the US dollar of the Euro before the release of the CPI figures.
There is also an interest rate decision due out Thursday from the ECB and with no changes in rates expected, the following monetary state should be monitored for signs on the central bank’s policies moving forward.