The EURUSD exchange rate has economic data released on Wednesday as the pair seeks to secure the uptrend.
EURUSD – Daily Chart
The price of the EURUSD has jumped from the recent sell-off to test the previous resistance at 1.15715. That is now the line in the sand for further gains, and a failure here would target strong support at 1.2031.
The high-level data will be retail sales for the eurozone at 5 pm HK, with a move higher to 2.6% is expected from 1.8%. That could be a boost for the single currency, indicating health in the consumer sector. At 2 pm HKT, there are also some German factory orders, which are expected to be 1% after a weak 1.4% last month.
The European Central Bank held its key interest rate steady almost two weeks ago as it urged caution over the tariff threat. The euro then sold off after the recent trade deal with the United States.
The euro bounced from those lows after a weak U.S. jobs number on Friday, which led to President Trump firing the statistics head. It also increases his criticism of his own central bank chief which is not good for dollar stability.
Eurozone inflation was steady near the bank’s 2% target last week, and that means there is no rush to cut rates at this moment. Central bankers are in a wait-and-see mode for the impact of tariffs. That changed again last week with the tariffs on Brazil and other nations.
The big U.S. dollar story this week is the Trump Friday deadline for Russia to change its strategy on Ukraine, but that is unlikely to happen. The U.S. may go ahead with sanctions on China and India over oil. That could rattle the markets again and could lead to retaliation.
Russia’s Putin said three sessions of peace talks had yielded some positive results, and Russia was expecting further negotiations.
“But in order to approach the issue peacefully, it is necessary to conduct detailed conversations. And not in public, but this must be done calmly, in the quiet of the negotiation process,” he added.
However, it seems like we are approaching a new era of aggressive reactions from the U.S. President, and traders should be cautious ahead of the Friday deadline.
