- EUR/USD has found an immediate hurdle around 1.0250 as DXY displays signs of recovery.
- The US ISM Manufacturing PMI is expected to remain subdued while New Orders Index may outperform.
- A downbeat Eurozone Retail Sales may impact the shared currency bulls.
The EUR/USD pair has sensed offers while attempting to kiss the immediate hurdle of 1.0250 in the Asian session. The asset has remained sideways in a wide range of 1.0100-1.0260 over the past two weeks and is likely to confuse the market participants further.
In today’s session, the entire focus of investors will remain on the US Institute of Supply Management (ISM) data. The ISM Manufacturing PMI is likely to shift lower to 52 from the prior release of 53. A drop in Manufacturing PMI indicates that vigorous interest rates elevation by the Fed has started displaying its consequences, however, inflation has not got caught now, which is a big reason to worry.
While the US ISM New Orders Index is warranting a decent improvement as the economic data is seen higher at 52 vs. the prior release of 49.2. This displays that the guidance for consumer spending is gaining sharply higher despite the runaway inflation.
Meanwhile, the US dollar index (DXY) has attempted a rebound near the prior week’s low of 105.54. The DXY is expected to remain subdued as recession signals in the US are accelerating.
On the eurozone front, investors are awaiting the release of the Retail Sales this week. As per the market consensus, the eurozone Retail Sales is seen at -1.6%, significantly lower than the prior release of 0.2% on an annual basis. Investors are aware of the fact that the inflation rate is accelerating and on that front, the Retail Sales data should be upbeat as the households are paying more consumption keeping the quantity constant.
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