EUR/USD Ignores EuroZone GDP, ECB Meeting on the Horizon
- First-Quarter Eurozone GDP Reports In-Line with Estimates
- Euro Sinks vs US Dollar Following Data Release
- Technical Analysis – EUR/USD Basing for ‘Surprise’ Rally?
Eurozone GDP confirmed output expanded at a 0.9 percent seasonally annualized, and at 0.2 percent in the first-quarter. The release of the report failed to prompt a bullish reaction in the single currency.
Price stability is the primary objective for the ECB, and with the ECB meeting looming ahead traders may sit on the side-lines, waiting for directional cues from the central bank. Stubborn deflation has plagued policy officials that the ECB announced the possibility of intervention in June.
The Euro fell against the US Dollar following the release to flirt with the 1.3600 handle. DailyFX Strategist Jamie Saettele proposes the possibility that EUR/USD is basing for a surprise rally.
EUR/USD 5-minute Chart using FXCMMarketscope 2.0.
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to email@example.com.
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