EUR/USD hovers around 1.0700, eyes on US first-quarter GDP data

The EUR/USD pair hovers around the 1.0700 psychological level on Thursday during the early Asian session. The modest uptick of the major pair is supported by the softer US Dollar (USD). Later in the day, Germany’s GfK Consumer Confidence Survey for April will be released. Additionally, the US preliminary Gross Domestic Product (GDP) growth number will be due. 

The US Department of Commerce revealed on Wednesday that Durable Goods Orders in the United States increased 2.6% MoM in March from a 0.7% rise in the previous reading, beating the estimation of 2.5%. Core goods, which excluded transportation, rose by 0.2% MoM, missing the expectation of 0.3%. 

The release of US GDP for the first quarter could offer clues of how strong the economy is growing and point to the Fed's next move. If the report shows stronger-than-expected data, this might trigger speculation that the Fed will delay the rate cut cycle and boost the Greenback. Markets have priced in nearly 70% odds that the US Federal Reserve (Fed) will cut its benchmark rate in September, according to the CME FedWatch tool,

Across the pond, the European Central Bank (ECB) policymakers stick to plans to cut interest rates this year, even though elevated US inflation might delay a pivot to looser policy by the Fed. The ECB President Christine Lagarde suggested that the central bank may cut its deposit rate from a record-high 4% in June, but has kept its options open for further action. The dovish stance of the ECB exerts some selling pressure on the Euro (EUR) and creates a headwind for the EUR/USD pair.