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EUR/USD has been on the back foot amid US dollar strength, digesting German GDP. US consumer data and Sino-American relations stand out later in the day, FXStreet’s analyst Yohay Elam reports.

Key quotes

“Germany has reported a drop of 2.2% in Gross Domestic product, in line with expectations and better than the continent’s average. The publication is helping keep EUR/USD above 1.08.” 

“The focus moves to the US shopper. Around 70% of the world’s largest economy is centered on consumption, and the read for April – a full month of lockdown – will likely be devastating.” 

“US industrial production statistics for April are projected to show a drop and economists also predict the preliminary Consumer Sentiment Index to edge lower.” 

“The safe-haven greenback benefited from growing Sino-American tensions. President Trump stated that the era of globalization is over and wants to bring supply chains home from China. Moreover, he refuses to speak to his Chinese counterpart Xi Jinping. Trump also advocated a stronger dollar, a shift from his previous stance, complaining about it.”