EUR/USD tilts higher for first session in three

Euro fluctuated higher in a narrow range during the Asian session, witnessing its rebound for the ninth session in fourteen from its lowest since May 30th, 2017 against the US dollar, on the threshold of developments and economic data expected today by the Euro-Zone and the US economies.

As of 04:50 GMT, EUR/USD rose 0.03% to $1.1207, compared to the opening at $1.1204, after reaching a high of $1.1209 and a low of $1.1201.

Markets are currently looking forward to Germany, the largest economy in the Euro-Zone, to release the seasonally adjusted preliminary reading of Q1 GDP, which could reflect a 0.4% expansion vs a stability at zero levels in the fourth quarter of last year, while the annual seasonally adjusted reading of the same index may show a slowdown in growth to 0.7% from 0.9% in the previous quarter.

This comes before we witness the second largest economy of the euro-zone, France's release of the final reading of the consumer price index (CPI), which may reflect a stability of growth at 0.2%, unchanged from the previous preliminary reading of March, and against 0.8% in February, This comes before witnessing the preliminary reading of the Employment Change index of the Euro Area, which could show a slowdown in growth to 0.2% vs. 0.3% in the fourth quarter of last year.

This comes in conjunction with the release of the seasonally adjusted preliminary reading of Q1 GDP of the euro-zone as a whole, which may reflect a stable growth of 0.4%, unchanged from the fourth quarter of last year's reading, while the annual seasonally adjusted reading of the same index may also show a stabilized growth at 1.2%, unchanged from last year's fourth quarter reading.

On the other hand, we have followed on Tuesday Deputy Prime Minister of Italy, Matteo Salvini's note that the Italian government may increase the budget deficit to 3% and general government debt to between 130% and 140% of the GDP of his country to support the conditions of the labor market. Which has re-expressed concerns over renewed tensions over the Italian government's budget between the EU and the Italian government amid the European Commission's failure to approve them.

On the other hand, investors are currently waiting for the US economy to reveal the reading of retail sales, which account for about half of consumer spending, which accounts for more than two-thirds of the US GDP, which may reflect a slowdown in growth to 0.2% from 1.6% in March. While the core reading of the same index may show a slowdown in growth to 0.7% from 1.2% in March.

This comes in conjunction with the release of the New York Industrial Index reading, which may reflect the contraction of breadth to 8.2 against 10.1 last April, and before we also witness the release of the Industrial Production Index by the largest industrial country in the world, which may show a stability at zero levels versus a 0.1% in March, while the Energy Utilization Index (EUI) reading may show a slowdown in growth to 78.7% versus 78.8% in March.

To Federal Reserve Vice Chair, Randal Quarles' testimony about the Senate Banking Committee oversight and regulation, ahead of the housing index reading release by the National Association of Home Builders, which may reflect a widening to 64 versus 63 in April. In conjunction with the release of the wholesale inventories reading, which may show a stability at zero levels versus 0.3% in February.