EUR/USD seeks fresh clues around 1.0550 after the biggest daily gain in two months By anilpanchal7 EURUSD ECB Fed RiskAppetite Macroeconomics
Additionally favoring the EUR/USD bulls was a slightly better-than-forecast reading of the preliminary
GDP for Q1 2022. The bloc’s GDP rose past 5.0% YoY to 5.1% while also rising above 0.2% QoQ expectations to 0.3%.repeated his usual push for the 50 bps rate hike and didn’t surprise markets, despite pausing equity bulls. However, St Louis Fed President and outspoken hawkish FOMC member James Bullard’s preference for a 50 bps move, versus the previous support to the 75 bps action, seemed to have weighed on the. That said, the US Treasury yields remained firmer, up nearly 10 bps to 2.
Talking about the US data, US Retail Sales rose at a pace of 0.9% MoM in April, slightly better than the expected pace of 0.7% but softer than the upwardly revised 1.4% growth . US Retail Sales ex Autos, popularly known as Core Retail Sales, rose 0.6% MoM in April versus the 0.4% expected gain. It is worth noting that there was a big upward revision to the previous month’s Core Retail Sales figures, to 2.1% MoM versus the prior estimate of 1.1%.
Elsewhere, improvement in covid conditions in China previously spread optimism in Asia, backed by softer US data. However, fears emanating from the Russia-Ukraine tussles challenge the bulls. Moving on, final readings of Eurozone HICP for April precedes the US housing numbers to entertain EUR/USD traders. However, major attention will be given to talks of rate hikes, inflation and growth, not to forget covid and geopolitics, for clear directions.A previous support line from late 2021 challenges immediate EUR/USD upside around 1.0550 ahead of the 21-DMA hurdle surrounding 1.0575. Meanwhile, a fresh downside can aim for April’s low of 1.0471.
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