EUR/USD consolidates around 1.0700 without a clear direction

The EUR/USD hovers around 1.0710 during the Asian session on Thursday. The pair experiences a lack of directional momentum, leaving the pair without a clear trend. However, the Euro (EUR) lies in the green zone after the mixed economic data from the Eurozone and Germany.

Eurostat's Wednesday report reveals a 0.3% month-on-month drop in Retail Sales for September, contrasting with a 0.7% decline in August. The market anticipated a 0.2% decrease, slightly deviating from the actual figure. On an annual basis, Retail Sales experienced a 2.9% fall in the reported month, surpassing the 1.8% decline in August but defying the expected 3.2% drop.

As anticipated, Germany's Harmonized Index of Consumer Prices maintained stability in both monthly and yearly figures for October. The monthly report indicates a 0.2% decrease, while the annual growth remains steady at 3.0%.

Additionally, China's Consumer Price Index (CPI) saw an annual decline of 0.2% in October, slightly surpassing the anticipated 0.1% decrease. Additionally, the month-on-month CPI dropped by 0.1%, contrasting with the earlier 0.2% growth.

On the other side, the downbeat US Treasury yields weigh on the US Dollar (USD) as the market cheers the positive market sentiment. The US Dollar Index (DXY) trades lower around 105.50 by the press time, continuing the losses for the second successive day. However, Fed officials resist the notion of reducing interest rates, which might have contributed to support for the Greenback.

Fed Governor Michelle Bowman reinforced the notion that the US central bank is contemplating future increases in short-term interest rates. Simultaneously, Neil Kashkari, President of the Minnesota Fed, voiced skepticism about whether the central bank had raised rates sufficiently. He cited the economy's resilience as a factor influencing his perspective.

Investors will likely monitor the upcoming weekly US Jobless Claims report for potential market impact. Additionally, they anticipate insights from Federal Reserve Chair Jerome Powell, who is scheduled to participate in a panel discussion later in the day.