EUR/USD Focuses Attention on Data and USD Dynamics

Yesterday, the Euro was moving cautiously and holding the EUR/USD pair above the 1.18 level. The pair had experienced five consecutive days of declines before. So it was looking to reverse that trend yesterday.

Investors are looking forward to the ECB meeting. The economic recovery evaluation and the exchange rate level will be discussed in the session. Philip Lane, the ECB board member, has supported a new wave of selling around the Euro.

The pair moves above the 1.1800 level

EUR/USD was moving directionless above the 1.18 level yesterday. GDP growth rates of the GDP of the Eurozone came in better than expected. Markets in the US went back to normal activity after Monday’s holiday. The Euro moved cautiously, and it held the EUR/USD pair above the 1.18 level yesterday. 

According to the third estimate published by Eurostat, the Eurozone economy shrank less than it was anticipated. The region’s quarterly contraction totaled -11.8% compared with the expectations of -12.1%. Besides, the annualized number reached -14.7% compared to the -15% expected.

Employment dropped by 2.9% in the Eurozone compared to the expected rate of 2.8%. Earlier in the session, the German trade surplus widened to $18 billion.

On the other side of the Atlantic, the US economic calendar makes a slight return. The publication of the NFIB index and the IBD/TIPP index of economic optimism stand out.

EUR/USD pair succeeded in testing the zone above the 1.20 level. Still, bulls failed to continue to move. The pair led downwards to the area below the level of 1.18. 

The bearish view on the dollar continues to support the pair’s underlying constructive bias in the broader picture. Besides, there is a positive sentiment about the Eurozone’s economic recovery after the coronavirus crisis. 

At the time of writing, the EUR/USD pair was shedding 0.05% on the day, trading at 1.1806.