The EUR/USD pair spent most of today going sideways in a narrow range just above the 1.1300 thresholds. It was last seen trading at 1.1305.
Earlier today, Bundesbank of Germany said in it’s monthly report that the economy picked up only moderately and the underlying pace of growth remains subdued due to an industrial downturn.
Elsewhere, Villeroy de Galhau, Governor of Banque de France and member of the Governing Council of the European Central Bank (ECB), supported ECB’s President Draghi’s remarks from the last ECB meeting by stating that the monetary policy must be accommodative.
The encouraging sentiment supported the Euro currency’s resilience against the US dollar and prevented the dollar from gaining strength.
European Union (EU) Trade Commissioner Cecelia Malmstrom today announced that the EU is ready to resume trade negotiations with the U.S. after months of delay due to resistance from France. Malmstrom added that a deal could be reached by the end of the year.
Meanwhile, today’s data from the U.S. show that NY Fed’s Empire State Manufacturing Index rose from 3.7 in March to 10.1 in April to aid the U.S. Dollar Index (DXY) in recovering its losses.
The positive sentiment further continues as President of the Federal Reserve Bank of Chicago, Charles L. Evans said that the U.S. economy is looking stronger than it did in December. “I’m looking for 1.75%-2.00% growth this year,” Evans said in an interview with CNBC today.
At the moment, DXY is holding steady at 96.93.