EUR/USD back to square one, near 1.10

FXStreet (Edinburgh) - The shared currency has managed to recover from weekly troughs around 1.0850 vs. the US dollar, in spite of a solid print from July’s Payrolls and recent comments from Fed officials clearly supporting the greenback.

EUR/USD keeps the range

After a negative first half of the week, spot has recovered the ground lost although it remained unable to retake the psychological barrier at 1.10 (Monday’s peak). However, EUR fared pretty well against an initial backdrop of rising strength around the dollar and firmer expectations of a rate hike by the Federal Reserve in September.

The wider 1.08-1.15 range has prevailed once again, although the ‘data-dependent’ stance of the Fed prompts investors to remain vigilant on the upcoming releases and events in the US economy, as the broader consensus in the global markets keeps pointing to an eventual breach of 1.0800 rather than a breakout of the ceiling around 1.1400/1.1500.

Key US Retail Sales next week - TDS

Analysts at TD Securities explained that after the disappointing performance in June, when retail sales activity declined for the first time since February, we expect consumer spending to rebound a very robust 0.5% m/m pace in July.
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