EUR/USD faces barricades above 1.1060, upside looks likely ahead of US GDP

• EUR/USD has dropped after failing to sustain above 1.1060 as USD Index has attempted a recovery.
• Losses in the S&P500 futures are escalating amid anxiety ahead of US GDP figures and corporate profits.
• Preliminary annualized GDP (Q1) is expected to decline to 2% from the former release of 2.6%.

The EUR/USD pair has faced some selling pressure after climbing above 1.1060 in the Asian session. A loss in the upside momentum in the major currency pair is backed by a recovery attempt by the US Dollar Index (DXY). The USD Index has rebounded after printing a weekly low of 101.20, however, the downside seems favored amid the absence of supportive triggers.

Losses in the S&P500 futures are escalating in the Asian session amid anxiety ahead of United States Gross Domestic Product (GDP) figures and corporate profits. The week is going to be pretty busy as two FAANG stocks will report their quarterly results. Meta Platforms (Facebook), and Google. Also, Microsoft will come forward with quarterly earnings and revenue guidance.

Meanwhile, overall weakness in the USD Index has weighed heavily on US Treasury yields. The 10-year US Treasury yields have dropped below 3.48%.

A power-pack action is anticipated in the USD Index amid the release of the US GDP numbers on Thursday. Preliminary annualized GDP (Q1) is expected to decline to 2% from the former release of 2.6%. This could trigger fears of a slowdown in the US economy.

But before that, US Durable Goods Orders data will be keenly watched. March Durable Goods Orders data is seen expanding by 0.8% vs. a contraction of 1.0%.

On the Eurozone front, European Central Bank (ECB) Governing Council member and Bank of France head Francois Villeroy de Galhau said on Monday, “Central banks’ core mandate worldwide is price stability and climate change already affects the level of prices and activity.”