During Thursday trading session the single currency reached six week low against the US dollar, after crucial data, that came out on Wednesday, regarding the contracting Euro zone economy for sixth quarter in a row. EUR/USD cross reached levels at 1.2855-57, followed by certain increase and consolidation at 1.2866, during Asian session.
The pair was expected to be supported at levels near 1.2808, lowest value from April 2nd, while the resistance levels were at 1.2886-88.
It was reported yesterday that the Euro zones economy suffered a reduction by 0.2% during Q1, while in annual terms the shrinkage was 0.9%.
Additionally, it became clear, that slight German economic growth of 0.1% was not enough to cover the whole Euro zones decline in GDP. Frances economy marked a larger rate of shrinkage than expected rate of 0.2%.
After this crucial data was released, expectations arose, that European Central Bank could continue economic easing by reducing the current record low base interest rate of 0.5%.
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