EUR/USD: Upside remains capped by 1.1170 post-Eurozone data

• Dollar index remains on the back post-US Q1 GDP murky details.
• Spanish political developments and mixed Eurozone data limit the gains.
• Focus shifts to US core PCE and personal spending data.

The EUR/USD pair stalled its recent bounce once again near the 1.1170 level and from there entered a phase of consolidation in the European trading, with the Spanish political uncertainty combined with mixed Eurozone macro news keeping the EUR bulls slightly cautious.  

The spot picked up bids near the 1.1140 demand zone in the Asian trades earlier today, as the US dollar remained on the back foot across its main competitors after the first quarter US GDP report revealed some meek details, which re-ignited US economic slowdown concerns in the coming quarters.

Markets stay focussed on the outcome of Sunday’s Spanish general election, as the “Incumbent centrists PSOE easily won the election but lack an absolute majority. Markets would like to see a coalition with market-friendly Ciudadanos. Both parties have a majority together, but both have ruled out cooperation. PM Pedro Sánchez will form a government with the left-wing Podemos and regional parties from Catalonia and the Basque Country,” FXStreet’s Analyst, Yohay Elam notes.

Hence, the Spanish political development could displease the EUR buyers and keep the upside attempts restricted. Further, the shared currency was weighed down by mixed Eurozone economic data, with upbeat money supply data negated by a dip in the bloc’s economic sentiment and confidence gauges.

With the Euroland data out of the way, the immediate focus now remains on the US macro releases due later today, including the core PCE price index, personal income and spending data for fresh impetus on the US dollar trades.

EUR/USD Technical Levels