Currently, during the Tuesday American trading session, the EUR/USD exchange rate is dancing around the 1.1550 level. It bears mention that this is a slight improvement following an abysmal US Retail Sales Report. All this weak data has put a damper on demand for the US Dollar. Consequently, the Euro and Pound remain under relentless pressure. The EUR/USD is range-bound, indicating a lack of conviction. At the same time, GBP/USD is struggling to stay under the 1.3600 mark.
That’s not what investors wanted to see coming out of the US Retail Sales report released earlier this week. Consequently, the confidence level in the US Dollar suffered a major blow. The EUR/USD currency pair climbed exceedingly, rising very close to the highest point of the daily as traders rushed to buy EUR/USD pair following the news. Any profits are mitigated by the broader range-bound performance of the currency correlated pair, showcasing market wishy-washiness.
GBP/USD is struggling, staying on the back foot and holding south of 1.3600, which is a key level in this pair. Caution surrounding ongoing tensions in the Middle East further undermines sentiment for the Pound, adding to its struggles in the current trading environment. The duo’s disappointing showing exposes a bigger theme at play – demand for the US Dollar is drowsy. This trend is putting pressure on the EUR/USD and GBP/USD markets as well.
Operators have all this on their radar as they do business in a topsy turvy world still reeling from disruptive market forces. Moreover, retail sales data released yesterday is providing even more cause to doubt the strength of the US economy. In turn, investors are taking a more risk-averse attitude. That trepidation was certainly evident in the trading ranges for both currency pairs during Tuesday’s American session.