If you’re a savvy investor looking to capitalize on the latest market trends, then you need to pay attention to the EUR/USD pair hovering around 1.1010 in Thursday’s Asian session. The Eurozone GDP growth figure for the second quarter matched market estimates, signaling a potential uptrend for the Euro against the Greenback.
The recent data released by Eurostat revealed that the Eurozone economy grew by 0.3% QoQ in Q2, in line with market expectations. On an annual basis, the economy expanded by 0.6%, further boosting the shared currency in the near term. However, concerns about the service sector’s strength and expectations of a rate cut by the European Central Bank (ECB) in September could limit the upside potential for GDP growth.
Meanwhile, in the US, signs of cooling inflation are weighing on the USD and providing a tailwind for EUR/USD. The US headline CPI inflation dropped to 2.9% YoY in July, below market estimates, while the Core CPI rose 3.2% YoY, in line with expectations. Traders are eagerly awaiting the release of US economic data, including Retail Sales, Initial Jobless Claims, Philly Fed Manufacturing Index, and Industrial Production, for fresh market insights.
Now, let’s break it down for you:
What You Need to Know:
- EUR/USD pair consolidates near 1.1010 after Eurozone GDP growth matches estimates.
- US CPI inflation drops to 2.9% YoY in July, below market consensus.
- Expectations of ECB rate cut in September could limit Euro’s upside potential.
- US economic data releases on Thursday could impact Greenback’s strength.
By staying informed about these key economic indicators and market trends, you can make informed investment decisions and potentially maximize your returns in the volatile foreign exchange market. Keep an eye on upcoming data releases and central bank decisions to navigate the EUR/USD trading landscape with confidence.