EUR / USD extends decline to 1.2150

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  • EUR / USD remains under pressure and tests the 1.2150 zone.
  • The Bundesbank revised up its GDP forecast for Germany.
  • Data Ahead: US Preliminary June Consumer Sentiment Indicator

EUR / USD was unable to return above 1.2200, a level it approached during the Asian session and changed direction. It just fell to 1.2150, marking a new low for the day. For now, like Monday and Thursday, the 1.2150 zone continues to offer support.

EUR / USD looking at the dollar and risk appetite

The EUR / USD continues to move without a clear direction, and for now it remains sideways moving between 1.2150 and 1.22200. The pair hardly reacted to the meeting of the European Central Bank (ECB) on Thursday. The central bank refrained from announcing any change in the pace of bond buying under the emergency purchase program, although it now sees higher inflation in 2021 and 2022, while also expecting the economy to expand at a higher rate in the next years.

At the beginning of the session, and somewhat in line with the ECB projections, the Bundesbank now sees that the german economy it will expand 3.7% this year and 5.2% in 2022, revised from 3.0% and 4.5%, respectively. In the data of the Eurozone, it was known that inflation in Spain in May reached 2.7% (annual) and the wholesale in Germany 9.7%.

In EE.UU., the highlight on Friday will be the consumer confidence report (preliminary) from the University of Michigan. Although it is hoped that traders continue to analyze what the data left on Thursday and focus on what the Federal Reserve about it when you meet next week.

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