All eyes are on whether the release of U.S. retail sales data will provide direction for the euro-dollar exchange rate.

All eyes are on whether the release of U.S. retail sales figures will provide direction for the euro-dollar exchange rate.

18.07.2023

In yesterday’s U.S. trading session, the U.S. dollar traded in a tight range against the euro as the Dollar Index, which had fallen below 100, recovered to the 100 level. The EUR/USD pair traded within a very narrow range between 1.1203 and 1.1249, fluctuating around the 20-period moving average on the hourly chart.Meanwhile, during today’s Asian trading session, the euro has been gaining ground, and the EUR/USD pair is trading slightly higher. We will be watching closely to see if today’s U.S. retail sales report triggers significant movement in the EUR/USD pair and what direction the market takes.

Among European currencies, the pound saw a back-and-forth movement against the yen. The GBP/JPY pair remained in a stalemate straddling the 20-day moving average, trading in a range between 180.571 and 182.146.Price action remains extremely subdued during today’s Asian session, and with no clear direction emerging, we will be closely monitoring whether the pound’s strength or weakness shifts as we move into the U.S. session.

Today’s economic indicators include the Turkish Housing Price Index at 20:30, Canadian Housing Starts at 21:15, the Canadian Consumer Price Index, Canadian Industrial Production, and the Canadian Raw Materials Price Index at 21:30, U.S. Retail Sales at 21:30, and at 22:15, U.S.Industrial Production, and U.S. Capacity Utilization; at 23:00, U.S. Business Inventories, the U.S. NAHB Housing Market Index, and remarks by U.S. Federal Reserve Vice Chair Bar; at 29:00, U.S. Foreign Investment in U.S. Securities; and at 7:45 the following day, New Zealand’s Q2 Consumer Price Index.We will carefully assess whether the release of U.S. retail sales data will provide direction for the EUR/USD pair.