EUR/USD trades lower near the 1.1370 area on Monday, surrendering earlier gains as investors remain cautious ahead of key Eurozone growth figures and the Federal Reserve’s (Fed) monetary policy decision.
Improved global risk sentiment follows a pause in hostilities between the United States and Iran, which triggered a sharp decline in Oil prices and a rally across stock and bond markets
West Texas Intermediate (WTI) Oil trades near $83.60 per barrel, falling more than 7% as concerns over supply disruptions ease. Investors now await preliminary second-quarter Gross Domestic Product data from Germany and the broader Eurozone. Eurozone GDP is expected to expand 0.2% QoQ after contracting 0.2% previously, while annual growth is forecast to accelerate to 0.4% from 0.3%.
Germany’s economy is expected to stagnate quarterly following a 0.3% expansion, although annual GDP growth is projected to rise to 0.6% from 0.4%. Weaker-than-expected figures could reinforce concerns about the region’s economic outlook and place additional pressure on the Euro. Germany’s preliminary July Consumer Price Index (CPI) will also be closely watched.