EUR / USD lost its momentum after rising higher on Monday.
The US Dollar Index remains in positive territory above 90.00. Positive data from the euro area did not help the shared currency to gain strength.
After closing the previous two trading days in positive territory, the EUR / USD pair struggled to preserve its bullish momentum on Tuesday and was last seen shedding 0.08% on the day at 1.2180.
EUR / USD remains directionless ahead of Thursday’s key events
Hours earlier, Eurostat announced that real Gross Domestic Product (GDP) in the euro zone contracted at an annual rate of 1.3% in the first quarter. Although this reading was better than the market expectation of -1.8%, it did not help the shared currency gain traction against its rivals.
Additionally, the ZEW survey economic sentiment component for the euro area fell to 81.3 in June from 84 in May, beating analysts’ estimate of 77. On a negative note, the same data for Germany fell to 79.8 from 84.4 and disappointed the market consensus of 86 by a wide margin.
In the second half of the day, market participants largely ignored the low-level data releases from the US and the cautious mood of the market allowed the dollar to outperform its rivals. Currently, the US Dollar Index is up 0.12% on the day at 90.97.
Monthly data released by the US Census Bureau Tuesday revealed that the US goods and services deficit decreased by $ 6.1 billion to $ 68.9 billion in April.
No high-impact data on the economic calendar will be released on Wednesday and the pair is likely to extend its sideways tack ahead of the European Central Bank’s policy announcement and US inflation data on Thursday.
Technical levels
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