• EUR/USD trades stronger near 1.1080 in Friday’s early Asian session.  
• US GDP expanded more than expected in Q2. 
• Cooling inflation from Germany and Spain supports the case for an ECB rate cut in September. 

The EUR/USD pair recovers some lost ground around 1.1080, snapping the two-day losing streak on Friday during the early Asian session. Traders might prefer to wait on the sidelines ahead of the German July Retail Sales and the US July Personal Consumption Expenditure (PCE) Price Index. 

The US Gross Domestic Product (GDP) growth rate rose at an annual rate of 3.0% in the second quarter (Q2), the Department of Commerce reported in its second estimate released on Thursday. The figure was better than the forecast of 2.8 and the initial estimate of 2.8%. 

The report suggested that the US could avoid recession and dampen the hope for a larger 50 basis-point (bp) rate cut in September by the Federal Reserve (Fed). This, in turn, provides some support to the US Dollar (USD). Financial markets are now pricing in nearly 66% of a 25 basis points (bps) rate cut in September, but the chance of a deeper rate cut stands at 34%, down from 36.5% before the US GDP data, according to the CME FedWatch Tool.