Categories: Markets

EUR / USD lateralized around 1.1800 after US data.

EUR / USD lateralized around 1.1800 after US data.
  • EUR / USD is fluctuating in a very tight range on Friday.
  • The US Dollar Index remains in positive territory around 92.70.
  • Consumer confidence in the United States weakened in July.

The pair EUR/USD is having a hard time finding direction on Friday as investors pay little to no attention to the latest US data releases At the moment, the pair is down 0.07% on the day to 1.1803 and is still on track to post its lowest weekly close since the end of March.

The US Census Bureau reported on Friday that retail sales increased 0.6% monthly in June. This reading beat market expectations of a 0.4% drop by a wide margin. On a negative note, the University of Michigan (UoM) Consumer Confidence Index fell to 80.8 in July’s advanced estimate from 85.5, disappointing analysts’ estimate of 86.5. In addition, the UM publication revealed that the 1-year inflation outlook rose to its highest level in almost 13 years at 4.8%.

Following the release of this data, the US Dollar Index is holding on to modest daily gains around 92.70, which does not allow the EUR / USD to rally.

EUR / USD outlook

Currency analysts at UOB Group believe that the EUR / USD is likely to remain in a consolidation phase between 1.1770 and 1.1895 in the next 1-3 weeks.

“The EUR is likely to trade between 1.1770 and 1.1895 over a period of time. Looking ahead, a daily close below 1.1770 would suggest that the EUR is ready to head towards 1.1700,” analysts said. “The outlook for the EUR to move to 1.1700 is not high for now, but it would remain intact as long as the EUR does not move above 1.1895.”

Additional levels

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