EUR Trading Quietly Near 1.12 as Market Focuses on US/Iran Deal and Economic Data

EUR/USD Faces Resistance Near 1.12 Amid Mixed Economic Data

The Euro (EUR) opened Thursday's North American session with a modest 0.2% gain against the US Dollar, trading near the 1.1200 level. While the EUR strengthened against risk-sensitive currencies like the Australian Dollar (AUD) and Norwegian Krone (NOK), it faced losses against safe-haven assets. Market sentiment was influenced by expectations of a disinflationary impact from a potential US/Iran deal.

Scotiabank's Chief FX Strategist, Shaun Osborne, noted that the EUR's recent rally appears to have stalled, with the currency encountering resistance around the 1.1200 mark. The Relative Strength Index (RSI) indicates subdued momentum, oscillating around the neutral 50 level. Osborne highlighted that near-term support for EUR/USD is expected below 1.1100, while resistance remains above 1.1250.

Economic data provided mixed signals: Eurozone industrial production exceeded expectations, suggesting economic resilience, while a slightly weaker Q1 GDP reading tempered bullish sentiment. Additionally, widening bond yield spreads between the Eurozone and the US have exerted downward pressure on the EUR, reinforcing the 1.12 resistance level.Gulf Press

In summary, the EUR/USD pair is experiencing consolidation near the 1.1200 level, influenced by a combination of economic data and geopolitical factors. Traders are advised to monitor developments in US/Iran relations and upcoming economic releases for potential catalysts that could drive the pair's next move.