On Wednesday, the EUR/USD currency pair is showing movements primarily influenced by United States economic data rather than activities within the Eurozone, according to analysts from ING. The analysts noted that despite the release of the second estimate of the Eurozone's first-quarter Gross Domestic Product (GDP) and industrial production figures for March, it's the U.S. data that is expected to continue steering the EUR/USD direction.
The Eurozone's GDP advanced print for the first quarter stood at 0.3% quarter-on-quarter. Additionally, the European Commission is scheduled to publish new economic forecasts today, potentially reinforcing a more optimistic view on the region's growth. This follows an improvement in the ZEW survey indicators on Tuesday, which could further support the Eurozone's outlook.
The analysts also highlighted that while not immediately apparent, potential government support for the real estate sector in China may have positive implications for the Eurozone's exports. The currency pair has recently crossed above the 100-day moving average of 1.0823, and further assistance from U.S. data could push it towards facing the next technical resistance at the April highs of 1.0885 and the psychological level of 1.0900.
Furthermore, today's remarks from European Central Bank (ECB) officials, including Olli Rehn, Madis Muller, Francois Villeroy, and Gabriel Makhlouf, will be closely monitored by investors for any indications of the central bank's monetary policy direction and its potential impact on the euro.
The EUR/USD pair's trajectory remains a focal point for market participants, as it reflects the ongoing interplay between the economic developments in the United States and the Eurozone, with the current emphasis on the U.S. economic calendar.
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