EUR/USD retreats below 1.1850 amid USD rebound
- EUR/USD remains mildly bid on Thursday following the previous decline.
- The Euro holds ground on upbeat economic data.
- US Dollar Index records gains on the ISM and Fed’s officials comments.
The buying tone surrounding the US dollar amid falling keeps EUR/USD on the verge of daily losses. After touching the low of 1.1910 on July 30, the pair continues to march lower since the beginning of the week.
At the time of writing, the EUR/USD is trading at 1.1835, down 0.01% on the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against the six majors, rebounds above 92.20 amid steady US Treasury yields.
US Federal Reserve Vice Chair Richard Clarida on Wednesday hinted at an interests rate hike in 2023 on the surprising pace of the economic recovery from the coronavirus pandemic.
In addition to that, San Francisco Federal Reserve President Mary Daly affirmed the possibility of the reduction of the massive assets purchasing program later this year or early next year.
Meanwhile, the ISM Non-Manufacturing Purchase Manager Index (PMI) came higher at 64.1 in July, well above market expectations of 60.5.
On the other hand, the single currency is boosted by the upbeat economic data. The Eurozone Retail Sales jumped 1.5% in June, compared with market expectations of a 1.7% increase.
The gains were limited as investors shed away from the riskier assets due to the concerns of the spread of the highly contagious delta variant and its impact on the fragile economic recovery.
The important data on the economic calendar to look out for would be the Euro Economic Bulletin, US Initial Jobless Claims, and Trade Balance data to gauge the market sentiment.
EUR/USD additional levels