- Check the EUR/USD's technical outlook and how the released data of the Germany's personal consumption expenditure affects EUR/USD's price.
Market spotlight on the US Personal Consumption Expenditure Price Index; its data is crucial and will play a key role in influencing expectations about the Fed’s policy, particularly concerning interest rates. Cutting interest rates will drive demand for the USD and increase momentum for the EUR/USD pair heading into the weekend. And then the market focus will shift to the European Central Bank’s Monetary Policy meeting next Thursday.
The EUR/USD is trying to benefit from the previous day’s solid bounce from the 1.1200 level, which is considered the lowest level from a week and a half ago. The EUR/USD is trading in a negative bias during the Asian session on Friday. The price currently hovers around the mid-1.1300s.
The EUR/USD is trading 0.23% lower at 1.1345 after the release of data on the retail sales in Germany declined 1.1% month over month in April. This decline was unexpected. While in March, the retail sales were revised up to 0.9% compared to the previous data reported a 0.2% decline.
On an annual basis, the retail sales rose 2.3% in April compared to March’s 3.3%, while the expectations were 1.8%.
While the inflation pressures are calming down in both Spain and France, this boosts the expectations that the European Central Bank will cut interest rates in its next meeting.
The US Dollar attracts buyers in response to the decision made by the US Court to block Trump’s tariffs, particularly after the US court announced that President Donald Trump overstepped his authority by imposing broad tariffs. This adds a layer of uncertainty in the markets and improves the risk appetite.
Technical outlook for the EUR/USD pair:
From a technical perspective, the EUR/USD is searching for a ground to be stable above the mid-1.1300 level. It’s still under the pressure of the mixed sentiment within the market. And technically, the pair is under the pressure of the resistance level of 1.13860, any clear day close above this level may open the door for the EUR/USD to reach a higher level towards 1.1432 and then 1.1510
On the flip side, the consolidation mode is open right now, so if the EUR/USD loses its power to stay above the 1.1300 level, it could fall, reaching the first support level at 1.1272 and then 1.1211. Last week’s technical outlook met the expectations of the bullish side, check it out there: EUR/USD Breaks Free: Crushing above 1.1200
