The EUR/USD is still stable as it responds to the recent economic data from the US and Europe. It is currently trading at 1.2415 which slightly heightened by 0.8% from the recent 1.2052.
EU GDP Data Outlook
The EUR/USD pair reacted strongly to the strong US inflation figures. This made the pair slightly unstable as it was greatly affected by the growth. The Dow Jones anticipated for a 3.6% increase in the US Consumer Price Index prior to the data release. The data record outlined that the US CPI recorded a 4.2% increase which was fastest growth rate in 12 years.
The pair will react to the latest Eurozone GDP that will be announced tomorrow. The numbers will be issued a few days after the European Commission increased its projection for the union. Analysts expect the EU GDP to tumble by 0.6% which will lead to a 1.8% year-on-year tightening. On the flipside, the European Commission expects the economy to take an upsurge of 4.2% in 2021 and 3.8% next year.
The EUR/USD will also react to Eurozone’s latest inflation data which will be released on Wednesday this week. According to the released data last week, economists expect the headline CPI to record a month over month basis and 1.6% on YoY basis. The core CPI is expected to rise by o.6% on a YoY basis.
The EUR/USD direction will be altered by the US data such as initial jobless claims figures. According to data from the Bureau of Labor Statistics, the unemployment rate in April was on a 6.1% high. However, the jobless claims numbers have been halved as the US economy struggles to recover. The housing records in US will also play a role in the pair’s correlation.
Support and Resistance
Support 1: 1.2070
Support 2: 1.2050.
Resistance 1: 1.2150
Resistance 2: 1.2200