EUR/USD Under Pressure as Eurozone Q1 GDP Confirms Marginal 0.1% Growth

The Eurozone's second estimate of Q1 GDP confirmed marginal quarter-on-quarter growth of 0.1%, matching the preliminary reading and weighing on EUR/USD sentiment. Notably, the prior quarter's GDP was revised downward from 0.3% to 0.2%, suggesting the euro area economy was already losing momentum heading into 2025. While the first quarter showed some resilience, the outlook has deteriorated as rising energy prices dampened economic sentiment through March and April, raising concerns about near-term growth prospects. The European Central Bank faces a delicate balancing act between supporting a fragile economy and managing inflationary pressures from elevated energy costs. For EUR/USD traders, the confirmation of sluggish Eurozone growth reinforces a mildly bearish bias on the euro, particularly if upcoming sentiment indicators continue to deteriorate. Key support levels to monitor include the recent range lows, while resistance remains capped by broader dollar dynamics. Traders should watch for further revisions to forward-looking indicators and ECB commentary for directional cues in the sessions ahead.