The economic calendar is a trader’s best friend for the rest of the week as heavyweight data rolls out of the US and the Euro Area. Today we get the first look at US Q1 GDP at 12:30 GMT before a range of growth, inflation and jobs data hits the screens on Friday. Each one of these releases has the ability to move market sentiment and direction ahead of the weekend.
The Euro continues to find strength from ongoing hawkish central bank chatter with next week’s ECB rate decision finely balanced. Some members see a 25 basis point as suitable while others are calling for 50 basis point hike. The ECB has already raised interest rates by 350 basis points since August 2022, at the fastest rate in the single block’s history, as the ECB tries to tackle stubbornly high inflation. Euro Area annual inflation is seen at 6.9% in March, down from 8.5% in February, but significantly higher than the central bank’s mandate of 2%.
EUR/USD trades on either side of 1.1050 ahead of today’s US GDP release with support seen around 1.0960 and resistance at 1.1096, Wednesday’s multi-month high. All three simple moving averages are in order and remain supportive, while a multi-week series of higher highs and higher lows remains in place.
EUR/USD Daily Price Chart – April 27, 2023