The euro traded at $1.2852 this morning, up 0.22% on the back of a surprise increase in the German GDP data.
German GDP grew a surprise 0.5% in the first quarter, well ahead of a consensus forecast of 0.1%, as exports helped the economy bounce back from contraction of 0.2% in the fourth quarter. On the other hand, official figures released today showed that French GDP growth came in at the expected 0% in the three months to 31 March.
EUR/USD trended down as worse-than-expected Italian GDP figures were released. The GDP for the first quarter fell by 1.3% on a year-on-year basis, from a contraction of 0.4% previously. It was expected to fall by 1.2%.
The eurozone GDP and economic sentiment data will be released at 10am (London time). Also out at the same time is the ZEW survey for the German economic sentiment. The US dollar may see movement once the US retail sales and CPI data is released later this afternoon at 1.30pm (London time).
EUR/USD seemed to be recovering from recent lows, although the technicals still paint a bearish picture in light of the Greek crisis. The Moving Average Convergence Divergence indicator shows a bearish crossover and the 14-day RSI is at 31, just outside of oversold territory. The level of support continued to be around the $1.28 level, which hasn't been breached since January 2012.