EUR/USD extends sideways grind around 1.1800 after US data
- EUR/USD is fluctuating in a very tight range on Friday.
- US Dollar Index stays in the positive territory around 92.70.
- Consumer confidence in the US weakened in July.
The EUR/USD pair is having a difficult time finding direction on Friday as investors pay little to no attention to the latest data releases from the US. At the moment, the pair is down 0.07% on the day at 1.1803 and remains on track to post its lowest weekly close since late March.
The US Census Bureau reported on Friday that Retail Sales increased by 0.6% on a monthly basis in June. This reading beat the market expectation for a decline of 0.4% by a wide margin. On a negative note, the University of Michigan's (UoM) Consumer Sentiment Index dropped to 80.8 in July's advanced estimate from 85.5, falling short of analysts' estimate of 86.5. Additionally, the UoM's publication revealed that the 1-year Inflation Outlook rose to its highest level in nearly 13 years at 4.8%.
Following these data releases, the US Dollar Index clings to modest daily gains around 92.70, not allowing EUR/USD to stage a rebound.
EUR/USD outlook
FX analysts at UOB Group think that EUR/USD is likely to remain in a consolidation phase between 1.1770 and 1.1895 in the next 1-3 weeks.
"EUR is likely trade between 1.1770 and 1.1895 for a period of time. Looking ahead, a daily closing below 1.1770 would suggest that EUR is ready to head towards 1.1700," analysts said. "The prospect for EUR to move to 1.1700 is not high for now but it would remain intact as long as EUR does not move above 1.1895."
Additional levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
