EUR/USD: Upbeat Eurozone GDP would add credence to the hawkish ECB rhetoric
|- Hawkish ECB rhetoric has put a bid under the EUR.
- A better-than-expected Eurozone GDP would boost hawkish ECB expectations.
The EUR/USD pair rose to 1.18 in Asia - the highest level since May 22 and will likely rally further if the Eurozone first quarter GDP, due at 09:00 GMT, beats estimates.
ECB amplifies hawkish rhetoric
The Europen Central Bank (ECB) officials have been out on the wires stating the central bank will likely discuss the timetable for ending its unprecedented stimulus program when policymakers gather in Riga, Latvia next week.
The hawkish sound bites coupled with fading Italian political uncertainty has put a strong bid under the common currency.
A better-than-expected Eurozone first quarter GDP would add credence to the ECB's hawkish rhetoric and hence could push the EUR higher across the board. The market expects the official data to show the Eurozone economy expanded 2.5 percent year-on-year and 0.4 percent quarter-on-quarter in the first quarter.
That said, the upside move in the EUR/USD may run out of steam if the US 10-year treasury yield finds acceptance above the 3 percent mark. As of writing, the 10-year yield is trading at 2.98 percent and the EUR/USD is changing hands at 1.1790.
EUR/USD Technical Levels
Resistance: 1.1855 (38.2% Fib R of April-May sell-off), 1.1916 (January 9 low), 1.1961 (November 27 high).
Support: 1.1772 (session low), 1.1727 (5-day moving average), 1.1680 (10-day moving average).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.