EUR/USD under pressure below 1.2400, US GDP on sight

• The pair keeps the tight range today around the 1.2400/1.2380 band.
• USD remains bid in the 89.50/55 area ahead of US data.
• US GDP figures for the fourth quarter are next of relevance.

The demand for the single currency stays subdued during the first half of the week and is now taking EUR/USD to the 1.2400/1.2380 band, down smalls for the day.

EUR/USD now looks to US GDP

Spot is prolonging the leg lower sparked after the rejection from yesterday’s multi-week tops in the vicinity of 1.2480 and is already shedding around a cent since those levels.

The broader risk appetite trends continue to drive the mood in the global markets, particularly in response to news of a probable meeting between President Trump and North Korean leader Kim Jong-un at some point during May, mitigating geopolitical concerns and relegating the ‘trade war’ driver to the back burner, at least in the near term.

On the data front, Consumer Climate in Germany measured by GfK surpsrised to the upside at 10.9 for the month of April. Later in the NA session, US Q4 GDP figures are expected followed by Goods Trade Balance and Pending Home Sales for the month of February.

EUR/USD levels to watch

At the moment, the pair is retreating 0.03% at 1.2399 facing immediate contention at 1.2377 (low Mar.28) seconded by 1.2342 (10-day sma) and finally 1.2241 (low Mar.21). On the flip side, a breakout of 1.2477 (high Mar.27) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.16).