GfK Beat and Wage Slowdown Hold EURUSD Steady Near 1.16

EURUSD remains pinned near 1.16 as the latest German GfK consumer sentiment beat at -29.8 and euro-area wage growth easing to 2.46% in Q1 offset earlier weak growth signals. The May 21 flash PMI collapse to a 31-month low of 47.5 for the composite and 63-month low of 46.4 for services had pointed to a potential Q2 GDP contraction. Earlier March trade surplus narrowing to €7.8B and April CPI rising to 3.0% y/y added mixed pressures, with sticky inflation and softening labor costs leaving markets balanced between ECB risks and subdued growth.