EUR/USD consolidates near 1.1870 ahead of EU Retails Sales data
- EUR/USD continues to notch higher levels on Thursday.
- US Treasury yields undermine the demand for the US dollar.
- US Dollar Index falls near the 92.00 level.
The selling tone surrounding the US dollar amid falling US Treasury yields keeps EUR/USD on the verge of daily gains. After touching the low of 1.1753, the pair continues to march higher since the beginning of the week
At the time of writing, the EUR/USD is trading at 1.1869, up 0.08% on the day.
.The US Dollar Index (DXY), which tracks the performance of the greenback against the six majors, remains on the backfoot amid falling US Treasury yields.
The Fed in its latest momentary policy meeting kept the target range for its federal rates unchanged at 0-0.25% and assets purchasing also remained unchanged at the current pace of $120 billion.
In addition to that, Fed Chair Jerome Powell dovish outlook growth and inflation took a toll on the US dollar.
On the other hand, the single currency is boosted by the upbeat economic data. The Eurozone Producer Price rose 1.4% in June, in line with the market expectations. The IHS Markit Eurozone Manufacturing PMI came at 62.8 in July slightly above the market expectations of 62.6.
Being said, the stronger economic data in the US and eurozone improved the risk appetite and drove market participants towards riskier assets. The risk-on market sentiment favors EUR/USD upside gains.
The important data on the economic calendar to look out for would be the Euro Retails Sales data and US ADP Employment Change to take fresh trading impetus.
EUR/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
