Euro Trades Sideways on Mixed Macro Prints and ECB Rate Decision

The  euro today alternated between gains and  losses against the  US dollar amid a  raft of  releases from across the  euro area that kept the  pair trading in  a  wide range. The  EUR/USD currency pair reacted differently to  the  mixed European announcements such as  Germany’s retail sales data among others as  it struggled to  find direction.
The EUR/USD today traded within a wide range marked by a high of 1.0891 and a low of 1.0833 and was within this range at the time of writing.
The  currency pair opened today’s session with a  large bearish candle but later rallied higher on  the  upbeat German retail sales report. According to  the  Federal Statistical Office, Germany’s retail sales fell 5.6% in  March versus the  expected 7.3% decline. The  pair extended its gains boosted by  upbeat Spanish preliminary inflation report for  March, which came in  at  0.3% beating analysts estimates of  0.2%. Germany’s downbeat April unemployment rate of  5.8% versus the  expected 5.2% had a  muted impact on  the  pair as  it traded sideways.
The  pair fell after the  release of  the  disappointing preliminary eurozone GDP data for  Q1 by  Eurostat, which showed a  3.8% contraction as  opposed to  the  expected 3.5%. The  upbeat eurozone consumer price index report and  the positive unemployment rate did little to  boost the  pair.
The  currency pair extended its losses after the  European Central Bank announced its monetary policy decisions keeping lending and interest rates steady. The ECB chief Christine Lagarde warned that the  recovery path was uncertain and  welcomed new government measures.
The  currency pair’s future performance is likely to  be affected by  geopolitical events given tomorrow’s empty European dockets.
The  EUR/USD currency pair was trading at  1.0865 as  at  14:12 GMT having fallen from a  high of  1.0891. The  EUR/JPY currency pair was trading at  115.79 having dropped from a  high of  116.14.

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