EUR/USD made a recovery on Tuesday, bouncing back above the 1.0800 mark and closing near 1.0820 by the end of the American market session. The pair is now gearing up for a busy day of economic data on Wednesday, with key releases including European Gross Domestic Product (GDP) and US Consumer Price Index (CPI) inflation figures.
US Producer Price Index (PPI) numbers came in as expected, with Core PPI showing a slight uptick to 2.4% year-over-year. This follows a revision of the previous period’s figure from 2.4% to 2.1%.
The Euro was boosted by May’s ZEW Economic Sentiment Survey results, which came in at 47.0, surpassing expectations and showing an improvement in consumer sentiment.
Looking ahead to Wednesday, European GDP growth is projected to be 0.3% for the first quarter, while annualized GDP growth is forecasted to remain steady at 0.4% year-over-year. In the US, CPI inflation is expected to hold steady at 0.4% month-over-month, with year-over-year CPI likely to dip to 3.4%. Core CPI is also anticipated to decrease to 3.6% year-over-year.
From a technical standpoint, EUR/USD’s recent jump has pushed the pair into bullish territory, surpassing the 200-day Exponential Moving Average. However, a pattern of lower highs is keeping the pair below the 1.0900 level.
In conclusion, EUR/USD is facing a busy day of economic data releases that could potentially impact its future direction.