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Euro slips after early gains, trades near 1.1370

EUR/USD held around 1.1372 while investors awaited Germany and Eurozone preliminary GDP and July CPI data, with ECB rate expectations a key driver.

Reported · Written up by our desk · Major Pairs

EUR/USD was weaker on Monday, hovering near the 1.1370 area and giving back earlier gains as traders stayed cautious ahead of major Eurozone growth releases and the upcoming Federal Reserve monetary policy decision, according to FXStreet.

The backdrop included improved global risk sentiment after a pause in hostilities between the United States and Iran, which weighed on oil but lifted stock and bond sentiment. FXStreet noted that West Texas Intermediate traded near $83.60 per barrel, down more than 7%, as supply disruption concerns eased.

Focus then turns to preliminary second-quarter GDP data, with Eurozone growth expected to expand 0.2% quarter over quarter after contracting 0.2% previously, and annual growth forecast to rise to 0.4% from 0.3%. Germany is expected to stagnate in quarterly terms after a 0.3% expansion, while annual GDP is projected to increase to 0.6% from 0.4%.

FXStreet also flagged Germany’s preliminary July CPI, with monthly inflation expected to rise 0.7% after declining 0.3%, and annual inflation expected to hold at 2.3%. The outlet said stronger inflation could support expectations that the European Central Bank maintains a restrictive stance, and it cited technical signals including EUR/USD capped below key moving averages around 1.1391 and 1.1420.

Latest closeEUR/USD 1.137 ▼0.3%

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