EUR / USD seems to close the day lateralized around 1.2200

• EUR / USD is fluctuating in a tight range on Thursday.
• The US Dollar Index stabilizes around 90.00 after US data.
• The focus shifts to key data releases on Friday from the EU and the US.

After Wednesday’s crash, the pair EUR/USD appears to have entered a consolidation phase and remains on track to close little changed around 1.2200.

With an eye on Friday’s data

Hours earlier, the member of the Governing Council of the European Central Bank (ECB), Pablo Hernández de Cos, said that the increase in inflation in the euro area was transitory, but this comment did not provoke a significant reaction from the market. Meanwhile, Bundesbank President Jens Weidmann argued that it was crucial to keep the fiscal support measures specific and time-limited. “It should be clear to everyone that we are not putting monetary policy at the service of fiscal policy,” Weidmann added.

During the US session, the US Bureau of Economic Analysis reported that it left the first quarter annualized GDP growth unchanged at 6.4%. Other data from the US revealed that initial weekly jobless claims dropped to 406,000. On a negative note, the monthly release from the US Census Bureau showed durable goods orders declined 1.3% monthly in April.

Amid these mixed data releases, rising US Treasury yields helped the dollar remain resilient against its rivals. Right now, the US Dollar Index was flat on the day near 90.00 and the benchmark 10-year US Treasury yield is increasing 1.7%.

On Friday, the European Commission will release the indicator for consumer confidence, business climate and economic sentiment for May. Later in the day, data from the Price Index for Personal Consumption Expenditures (PCE), Personal Expenditures, Personal Income and the Consumer Sentiment Index from the University of Michigan will be featured on the US economic agenda.

Technical levels