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EUR/USD has dropped to its lowest level in two months, with the pair trading around 1.1130 after a three-day losing streak against the strong US Dollar. The US Jobless Claims data and downbeat tech sector performance have favored Treasury yields, boosting the US dollar.
The Philadelphia Fed Manufacturing Survey gauge improved to -13.5 for July, while Existing Home Sales slumped -3.3% MoM in June. US Building Permits and Housing Starts repoted downbeat figures for June, while Retail Sales growth eased despite the Retail Sales Control Group’s upbeat details.
The recovery in Treasury bond yields, mainly backed by downbeat tech sector earnings and falling benchmark equity indices, also propels the US Dollar and weighs on the EUR/USD.
On the Euro front, Germany’s Producer Price Index improved to -0.3% MoM, while the Eurozone Consumer Confidence edged higher to -15.1. The European Commission revised the bloc’s first quarter GDP estimate up 0.1% to 0.0%.
Despite the upbeat Eurozone data, economic fears are gaining momentum, pushing back ECB hawks and flagging concerns about the central bank’s policy pivot. A light calendar may allow the Euro pair to consolidate the first weekly loss in three if market sentiment improves. However, the cautious mood ahead of next week’s monetary policy decision by the ECB and the Fed may not allow the risk appetite and EUR/USD to rise further.
