EUR/USD whipsaws on Thursday to end right where it started

• EUR/USD fell early on Thursday, before a firm recovery back into the day's opening bids.
• US PPI inflation eased faster than expected, alleviating tariff fallout fears for the time being.
• The UoM's latest consumer sentiment survey results will drop on Friday.

EUR/USD whipsawed on Thursday, briefly dipping back below the 50-day Exponential Moving Average (EMA) and tapping the 1.1000 level for the second time in a week. A late recovery pushed Fiber bids back to where they started the trading day, near the 1.1200 handle.

Pan-European Gross Domestic Product (GDP) figures for the first quarter ticked slightly lower on the near end of the curve, dipping to 0.3% QoQ. Annualized GDP still held steady at 1.2% YoY, but a soft patch in the Q1 data is still giving Fiber traders a reason to pause. In the US, the Producer Price Index (PPI) inflation decreased to only 0.1% month-over-month in April, allowing investors to momentarily relax, sensing that tariff effects haven't yet influenced key economic data.

The latest Consumer Sentiment Index from the University of Michigan (UoM) is set to be released on Friday. Market forecasts anticipate a rise in consumer survey results, which have dropped for four straight months, reaching a two-year low of 52.2. Investors are hopeful that consumer sentiment will show some recovery, potentially boosting the index back to 53.4.

EUR/USD price forecast

Thursday's back-and-forth chart action leaves the Fiber on pace to continue its steady downside drift; bullish momentum is still keeping EUR/USD bolstered above key technicals for the time being. However, the pair's slow and steady grind lower from late April's peak just shy of the 1.1600 handle remains difficult to ignore.

EUR/USD daily chart