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Euro Falls on Upbeat US Retail Sales and China Retaliation Fears

August 15, 2019 at 13:32 by Simon Mugo

A closeup of a stack of euro coins with some notesThe euro today fell against the US dollar during the American session following the release of upbeat advance US retail sales report, which boosted the greenback. The EUR/USD currency pair gave up most of its earlier gains amid a deluge of positive data from the US docket.

The EUR/USD currency pair today rallied to a high of 1.1158 in the mid-European session before falling to a low of 1.1134 in the American session and was near these lows at the time of writing

The currency pair opened today’s session trading sideways as investors remained undecided on the pair for the first three hours. The pair proceeded to rally higher into the European session driven by improved investor sentiment, which favoured the single currency. The pair’s rally was hampered by threats of retaliatory measures made by China following the latest US tariffs. However, the pair’s fall was largely triggered by the release of the US retail sales data for July, which beat expectations. According to the Census Bureau, US advance headline retail sales grew 0.7% in July beating expectations set at 0.3%, while core retail sales expanded by 1.0% versus the consensus estimate of 0.3% growth.

The release of the upbeat New York Empire State manufacturing survey for August combined with the Philadelphia Fed manufacturing business outlook survey, both of which beat expectations by a wide margin also drove the pair lower.

The currency pair’s future performance is likely to be affected by trade headlines and investor sentiment given the empty European dockets.

The EUR/USD currency pair was trading at 1.1141 as at 13:30 GMT having dropped from a high of 1.1158. The EUR/JPY currency pair was trading at 118.23 having fallen from a high of 118.97.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

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