- EUR/USD lost its momentum after edging higher on Monday.
- US Dollar Index holds in the positive territory above 90.00.
- Upbeat data from the euro area failed to help the shared currency gather strength.
After closing the previous two trading days in the positive territory, the EUR/USD pair struggled to preserve its bullish momentum on Tuesday and was last seen losing 0.08% on a daily basis at 1.2180.
EUR/USD stays directionless ahead of Thursday’s key events
Earlier in the day, Eurostat announced that the Real Gross Domestic Product (GDP) in the eurozone contracted at an annual rate of 1.3% in the first quarter. Although this reading came in better than the market expectation of -1.8%, it failed to help the shared currency gather strength against its rivals.
Additionally, the ZEW Survey’s Economic Sentiment component for the euro area edged lower to 81.3 in June from 84 in May, beating analysts’ estimate of 77. On a negative note, the same data for Germany dropped to 79.8 from 84.4 and missed the market consensus of 86 by a wide margin.
In the second half of the day, low-tier data releases from the US were largely ignored by market participants and the cautious market mood allowed the greenback to outperform its rivals. Currently, the US Dollar Index is up 0.12% on the day at 90.97.
The monthly data published by the US Census Bureau revealed on Tuesday the goods and services deficit of the US declined by $6.1 billion to $68.9 billion in April.
There won’t be any high-impact data releases featured in the economic calendar on Wednesday and the pair is likely to extend its sideways grind ahead of the European Central Bank’s policy announcement and the US inflation data on Thursday.
Technical levels to watch for
Share
