EUR/USD moves down, operators prepare for the Fed verdict, the feeling of the euro is illuminated, US USA data

• The EUR/USD falls below 1,1550 while the operators digest mixed US data and monitor tensions in the Middle East.
• The US retail sales fell 0.9% in May, but the control group linked to GDP increased 0.4%; Industrial production disappointed.
• The markets await the decision of the Federal Reserve on Wednesday for a clearer address before new positions in EUR/USD.

The euro (EUR) weakens against the US dollar (USD) on Tuesday, with the EUR/USD torque remaining afloat while the operators digest a firm dollar despite the disappointing retail sales data and the geopolitical tensions in progress derived from the Iran-Israel conflict.

The EUR/USD pair goes back during the American session, sliding around 1,1514 after Monday’s failed attempt to maintain profits above the 1,1600 psychological barrier. Meanwhile, the American dollar index (DXY) remains firm above the 98.00 mark, being lastly seen negotiating about 98.35 while operators cling to the dollar in the midst of safe refuge flows.

The latest United States figures painted a mixed macroeconomic panorama. Retail sales fell 0.9% intermensual in May – the greatest drop in four months – since consumers reduced spending to the imminent imposition of tariffs. However, the retail sales control group, which contributes to the Gross Domestic Product (GDP), surprised up with an increase of 0.4%. Meanwhile, US industrial production fell 0.2% in May, being below the market forecasts of a modest increase, highlighting areas of weakness in the manufacturing sector.

On the European front, the feeling data showed a positive surprise. The ZEW indicator of economic feeling for the euro zone shot 23.7 points to 35.3 in June, well above the expectations of 23.5, suggesting a growing optimism about the economic perspectives of the block despite the winds against geopolitics in progress. In the fixed income markets, the yields of the government bonds of the euro zone rose slightly on Tuesday while the operators remained cautious before the uncertain trajectory of the conflict in the Middle East. The 10 -year reference yield from Germany rose a basic point to 2.54%, while two -year scray yield increased to 1.85%, reflecting a modest risk premium and a cautious investment feeling.

Looking ahead, operators are likely to remain out of the Board of Wednesday’s policy decision, waiting for new signs about the economic perspectives and the future path of rates before making new bets. In Europe, the attention will focus on the new inflation figures in the euro zone (HICP) and the comments of the officials of the European Central Bank, including Knot, Nagel and Villery, all scheduled for Wednesday, which could offer more clues about the upcoming ECB’s policy movements.