The EUR/USD pair is on a downward trajectory, moving closer to the 1.0400 mark during European trading on Thursday. This decline comes as traders closely monitor upcoming GDP data from Germany and the European Union, alongside an anticipated decision from the European Central Bank (ECB). Meanwhile, the US Federal Reserve's hawkish pause continues to pose challenges for non-yielding commodities, adding to the cautious trading environment.
Traders are hesitant to make significant moves with the major currency pair ahead of the release of the US fourth-quarter advance GDP data. The unexpected contraction in France’s Q4 GDP has added further strain on the EUR/USD, compounded by expectations of an ECB rate cut. The prospect of a rate reduction is seen as a foregone conclusion by many, with another 25-basis point cut anticipated this week.
Renewed buying interest in the US Dollar is exerting additional pressure on the EUR/USD pair. However, sliding US bond yields have kept USD bulls defensive, providing some support for the pair. Gold prices, meanwhile, have extended their consolidation within a weekly trading range. A symmetrical triangle pattern has formed on technical charts, and a breakout above the target at the $0.84 level could potentially elevate its current trading levels by 110%.
In parallel developments, GBP/USD remains subdued below 1.2450 in the early European session on Thursday. The pair is affected by increased demand for the US Dollar and a generally cautious market sentiment. Additionally, Stellar’s price has stabilized around $0.40 after experiencing a 3.4% decline over the past two days.