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  • EUR/USD fluctuates in a narrow band on Thursday.
  • US Dollar Index steadies around 90.00 after US data.
  • Focus shifts to Friday’s key data releases from the EU and the US.

Following Wednesday’s decline, the EUR/USD pair seems to have gone into a consolidation phase and remains on track to close little changed around 1.2200.

Eyes on Friday’s high-tier data

Earlier in the day, European Central Bank (ECB) Governing Council member  Pablo Hernandez de Cos said that the rise in inflation in the euro area was transitory but this comment failed to trigger a meaningful market reaction. Meanwhile, Bundesbank President Jens Weidmann argued that it was crucial to keep fiscal support measures targeted and limited in time.  “It must be clear to everyone that we are not putting monetary policy at the service of fiscal policy,” Weidmann added.

During the American session, the US Bureau of Economic Analysis reported that it left the annualized first-quarter GDP growth unchanged at 6.4%. Other data from the US revealed that the weekly Initial Jobless Claims declined to 406,000. On a negative note, the US Census Bureau’s monthly publication showed that Durable Goods Orders declined by 1.3% on a monthly basis in April.

Amid these mixed data releases, rising US Treasury bond yields helped the greenback stay resilient against its rivals. At the moment, the US Dollar Index flat on the day near 90.00 and the benchmark 10-year US T-bond yield is rising 1.7%.

On Friday, the European Commission will publish the Consumer Confidence, Business Climate and Economic Sentiment Indicator for May. Later in the day, the Personal Consumption Expenditures (PCE) Price Index, Personal Spending, Personal Income and the University of Michigan’s Consumer Sentiment  Index data will be featured in the US economic docket.

Technical levels to watch for