• EUR/USD recovers from dip into 1.0700, but bullish momentum remains thin.
• Pan-European GDP figures met already-low expectations.
• An appearance from ECB President Lagarde and US Retail Sales in the pipe.

EUR/USD found thin footing to stage a rebound from a decline into 1.0700, but the high side is looking far away as the pair remains challenged by bearish flows as the US Dollar (USD) finds broad-market support after US inflation figures on Wednesday spooked market sentiment.

European Gross Domestic Product (GDP) figures met expectations, but a lopsided pan-European economy suffering from lagging growth saw the bar set very close to the floor with investors forecasting a flat growth print.

Daily digest market movers: EUR/USD rebounds from 1.0700, but bearish sentiment weighs heavy

• European GDP printed at 0.0% for the fourth quarter, as expected.
• Annualized quarterly euro area GDP showed slim 0.1% growth for the year through the fourth quarter.
• European Industrial Production showed a healthy uptick to 2.6% in December, well above the forecast -0.2% versus the previous month’s 0.4% (revised from -0.3%).
• Euro (EUR) traders will be keeping an eye out for European Central Bank (ECB) President Christine Lagarde’s appearance slated for early Thursday.
• ECB President Lagarde will be testifying before the European Parliament’s Committee on Economic and Monetary Affairs in Brussels at 08:00 am GMT Thursday.
• US Retail Sales figures are also due Thursday.
• US Retail Sales in January are expected to decline in January, coming in at -0.1% versus the previous month’s 0.6%.