After two days of losses, EURUSD makes recovery attempts on Wednesday but the rebound looks unsustainable and the common currency is still vulnerable. Following a rejection from early-May highs around 1.1260, the prices struggle to stay above the 1.12 handle.
German Q1 GDP came in as expected at 0.4% q/q. This is the first quarter growth since Q2 2018. The economy grew 0.6% on an annualized basis, somewhat disappointing market expectations. In general, the preliminary report was neutral for the pair and failed to affect the euro substantially, partly due to expectations of a more important US retail sales report due later today.
Fundamentally, the dollar still looks more attractive for buyers as the US economy in in a better shape while the prevailing risk aversion after the latest trade war escalation gives the greenback the additional support.
In the short term, depending on the incoming economic data, EURUSD will continue to oscillate around the 1.12 figure, with risks are still skewed to the downside.