EUR/USD has posted small losses in the Wednesday session. Currently, the pair is trading at 1.1316, down 0.15% on the day. On the release front, there are no major eurozone events. In the U.S. today’s key indicators are retail sales reports. The markets are bracing for a downturn in the July data, with retail sales expected to dip to 0.1% and core retail sales forecast to drop to 0.3%.
The U.S dollar continues to make headway against the euro, as the pair is again below the 1.14 line. Currently, EUR/USD is trading at its lowest level since June 2017. The continuing chatter over trade war tensions between the U.S and its major trading partners has had a negative impact on the risk appetite and boosted the U.S dollar. Ironically, President Trump has continually complained about the strong dollar and his comments have weighed on the dollar, but only brief spells. Investors have let the booming US economy do the talking, rather than the ominous sounds of the President’s tweets.
Eurozone GDP in the second quarter managed to beat the estimate, but investors are not impressed. The economy posted a modest gain of 0.4% for a second straight quarter. The estimate stood at 0.3%. German ZEW Economic Sentiment gained ground in August but still remains in negative territory, with a reading of 13.7 points. Weak growth in the eurozone and trade tensions with the U.S have affected investor sentiment, and the euro has struggled as a result, trading at 14-month lows against a strong U.S dollar.
