Eurozone Q1 GDP Shrinks 0.2%, EURUSD Faces Fresh Downside Pressure

Eurozone Q1 final GDP contracted 0.2% q/q versus +0.1% expected, confirming weakening momentum after a week of soft data. Inflation remained sticky with May headline CPI at 3.2% and core at 2.5%, while services and composite PMIs stayed in contraction territory at 47.7 and 48.5. Retail sales missed at -0.4% m/m and France posted its sharpest private-sector decline in over two years, leaving EURUSD near 1.16 as markets balance persistent price pressures against rising recession risks.