EUR/USD finds ground near 1.0800 ahead of GDP numbers, ECB’s policy eyed

• EUR/USD has witnessed some short coverings near 1.0800 ahead of GDP numbers.
• The risk appetite of investors has expanded slightly on fewer headlines from the Ukraine crisis.
• Investors are focusing on the mega event of ECB’s interest rate policy this week.

The EUR/USD pair has witnessed a pause near 1.0800 after bleeding continuously in the last five trading sessions. It would be early to tag the pause as a reversal for now as the geopolitical situations have not changed fundamentally and this could be price or time pullback, which can result in a fresh downside impulsive wave going forward.

For now, weakness has been halted as investors are waiting for the quarterly and yearly Gross Domestic Product (GDP) numbers by the Eurostat. As per the street estimates, the quarterly and yearly GDP numbers are likely to print in line with the prior figures at 0.3% and 4.6% respectively. In addition to GDP numbers, Employment Change will also be reported on Tuesday. Also, the quarterly and yearly Employment Change is likely to remain similar to the previous prints at 0.5% and 2.1% respectively.

The shared currency has remained vulnerable in comparison with the greenback. The ongoing war between the Kremlin and Kyiv has posed a threat of recession in Europe. Apart from that, the European Union (EU) is considering a cut on the Russian gas imports by two-thirds a year in coordination with the US decision to prohibit imports of oil from Russia.

Meanwhile, the US dollar index (DXY) has slipped near 99.00 after a slight expansion in the risk appetite of the market participants. Moreover, investors are also trimming their positions ahead of the US Consumer Price Index (CPI) numbers.

The week is full of events for the shared currency. After the disclosure of GDP numbers and Employment Change data on Thursday, investors will shift their focus to the mega event of the European Central Bank (ECB)’s interest rate decision, which is due on Thursday.