The EUR/USD currency pair is sliding closer to 1.0400 during European trading on Thursday, as a combination of economic factors weigh on its performance. The technical outlook reveals a symmetrical triangle formation, suggesting potential movement if the pair breaks above the $0.84 level, which stands at 110% of its current trading value. Meanwhile, sliding U.S. bond yields have kept USD bulls cautious, offering some support to the euro.
Unexpectedly, France's Q4 GDP contraction has added pressure on the EUR/USD pair, compounded by growing expectations of a European Central Bank (ECB) rate cut. Additionally, a renewed uptick in the U.S. Dollar has contributed to the pair's downturn. Traders are exercising caution and refraining from making substantial bets ahead of the U.S. Q4 advance GDP data release.
Economic data from Germany and the European Union are also in focus as market participants await the ECB's forthcoming decision. The EUR/USD is experiencing the impact of the Federal Reserve's hawkish pause, which serves as a headwind for non-yielding commodities like currencies. The ECB's focus on stimulating activity within the common bloc continues to influence the EUR/USD.
Recent economic indicators have remained consistent with an economy struggling with stagnation. In related developments, gold prices have extended their consolidative trend within a weekly trading range, reflecting broader market uncertainty. Meanwhile, the GBP/USD is maintaining its position below 1.2450 during the early European session on Thursday.