Investors await Germany’s May HICP figures to gauge potential ECB rate hike timing amid mixed Eurozone economic signals.
The Euro remains under pressure against the US Dollar, trading below 1.1660 as markets digest mixed Eurozone data and await key German inflation figures. EUR/USD sits at 1.1643, reflecting cautious optimism after a US-Iran ceasefire extension but lingering uncertainty over economic trends.
Recent Eurozone releases painted a mixed picture: French Q1 GDP contracted, while Italian growth accelerated and German unemployment unexpectedly declined. Inflation in France and Spain undershot forecasts but stayed above the ECB’s 2% target. Focus now shifts to Germany’s preliminary May HICP, expected to show moderation after sharp energy-driven gains in prior months.
Technical analysis suggests a neutral-to-bullish bias, with a break above 1.1660 needed to confirm upside momentum. The data could reinforce expectations for a June ECB rate hike if inflation remains elevated.