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EUR/USD holds above 1.1600 after upbeat Eurozone growth and sentiment

Eurozone data revisions lifted Q2 growth to 0.6% and Sentix to 5.1, keeping EUR/USD near 1.1650 before trimming back.

Reported · Written up by our desk · Major Pairs

EUR/USD held above 1.1600 after Eurozone releases helped the single currency gain earlier in the session, with the pair spiking to around 1.1650 before falling back. FXStreet said Monday’s moves amounted to roughly 28 pips as the market digested the latest growth and sentiment updates.

The Eurozone revised second-quarter growth up to 0.6% versus a 0.4% consensus, with FXStreet attributing the revision to trade adding 0.9 percentage points to the quarter while inventories subtracted 0.5 percentage points. The Sentix investor survey also jumped to 5.1 from 0.9, supporting a modest advance in EUR/USD.

FXStreet noted that central banks are both expected to raise rates this month amid the same energy shock, and that a widening or narrowing rate gap is less likely to move the currency if it is not changing. It also said Friday’s dollar move was tied to US nonfarm payrolls, which printed 162K versus a 53K consensus, briefly pushing EUR/USD lower by about 40 pips to just under 1.1600.

Looking ahead, FXStreet pointed to the ECB decision on Thursday, where the deposit rate is expected to rise to 2.5% and the main refinancing rate to 2.65%. It added that rate pricing suggests the ECB move may take policy toward a neutral range, limiting how far EUR/USD is likely to move based on the decision alone.

Latest closeEUR/USD 1.159 ▼0.1%

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