The EUR/USD it has fallen about 15 pips after the release of US retail sales for the month of August, which unexpectedly registered rises rather than falls. The pair has regressed to new three-week lows at 1.1753.
The dollar has reacted with gains on almost all fronts, with its DXY index rising to 92.89, its highest level since Aug. 27. The good data gives hope about the economic recovery of the United States, and could give a boost to the Fed to announce some reduction of stimuli before the end of the year.
US retail sales rose 0.7% in the monthly reading for August, positively surprising the market, which was expecting a 0.8% drop after the 1.1% decline seen in July.
Retail sales excluding vehicles grew by 1.8%, notably improving the estimated decrease of 0.2% and the previous month’s fall of 0.4%. August is the largest rise recorded by the indicator since last March.
On the other hand, the US published the Philadelphia Fed manufacturing index, which rose to 30.7 in September, surpassing the expected 19, its highest level since June. Weekly jobless claims were the only data with somewhat disappointing numbers, rising to 332,000 from the previous 312,000, worsening the 328,000 estimated by experts.
EUR / USD levels
With the pair trading above 1.1754 at time of writing, shedding 0.53% on the day, the first support appears at 1.1735, floor of August 27. Further down the 1.1700 zone awaits and 1.1664, its minimum since August 20 and in the last ten months.
To the upside, the pair needs to rally above the psychological 1.1800 level in order to target resistance around 1.1830, where are the highs of yesterday. Above, the main barrier awaits in 1.1845, ceiling of September 14.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.