EURUSD falls at 1.0950 as the USD recovers, with focus on Eurozone retail sales data.
During the early European trading hours on Tuesday, the EURUSD pair is trading slightly lower around 1.0950. The improved risk sentiment helps the Greenback and limits the major pair’s upside.
Goolsbee suggested the Fed may take action if the economy deteriorated.
On Monday, Chicago Fed President Austan Goolsbee stated that the Fed would act if economic or financial conditions worsened. Any comments from Fed officials about previous rate decreases could weaken the USD in the near term.
Traders looking for fresh impetus from Eurozone Retail Sales on Tuesday, which are predicted to fall to 0.1% YoY in June.
Traders will take more signals from the Eurozone Retail Sales report. Which is predicted to fall to 0.1% YoY in June.
The sell-off rippled through the financial Markets fell on Monday as investors grew concerned about the US economy’s recession. This, in turn, brought the US Dollar (USD) down to year-to-date lows of 102.15. However, a shift in global risk sentiment has alleviated some market concerns. Furthermore “Markets panicked after the U.S. employment report on Friday,” said Andrzej Szczepaniak, an economist at Nomura. Traders are now pricing in almost 60% of the US Federal Reserve’s (Fed) emergency easing.
On the positive side, the US ISM Service Purchasing Managers Index (PMI) The Institute for Supply Management (ISM) said Monday that inflation rose to 51.4 in July from 48.8 in June, above expectations.
Apart from a potential emergency Fed rate decrease. Investors expect the European Central Bank (ECB) to cut interest rates by 0.5 percentage point at its next meeting in September. The Eurozone Retail Sales data on Tuesday may provide some insight into the Eurozone’s economic state and the direction of the ECB rate cut. Moreover In the event of stronger-than-expected readings, the Euro (EUR) could rise against the USD.
