EURUSD fell toward 1.0800 in the early European session on Thursday.
In the early European session on Thursday, the EURUSD fell to 1.0800 due to mild bearish pressure. The near-term technical view implies that the negative bias will persist, but the pair’s movement may remain modest as the Easter weekend approaches.
The cautious market environment helps the USD maintain its position ahead of data announcements.
Although rising risk sentiment made it harder for the US Dollar (USD) to find demand on Wednesday, hawkish comments by Federal Reserve Governor Christopher Waller helped the currency stay resilient against its rivals, limiting EURUSD’s potential.
Fed Governor Christopher Waller stated that they are not in a haste to lower the policy rate.
According to Waller, the Fed is not in a hurry to cut the policy rate in response to the latest inflation figures, and he believes the US central bank may need to keep the present interest rate in place for longer than expected.
Meanwhile, German statistics released early Thursday indicated that retail sales fell by 1.9% on a monthly basis in February. This data follows the 0.4% contraction in January and was lower than the market anticipation of a 0.3% increase, making it harder for the Euro to gain strength.
In the second half of the day, the US economic docket will include weekly Initial Jobless Claims data as well as February Pending Home Sales data. . The US Bureau of Economic Analysis will also disclose its final revision to fourth-quarter real GDP growth. If weekly first Jobless Claims fall to or below 200K, the first reaction may help the USD outperform its rivals.
Market players may also seek to alter holdings on the last trading day of the first quarter, resulting in some disruptive swings in the second half of the day.
