Eurozone retail sales fell 0.4% in April, but a weaker USD and geopolitical optimism lift the EUR/USD pair.
The Euro climbed to 1.1630 against the US Dollar in European trading, reversing losses despite weaker-than-expected Eurozone retail sales data. A 0.4% decline in April sales was slightly better than the anticipated 0.3% drop, while March figures were revised upward to a 0.8% gain from a previously reported 0.1% decline.
Market sentiment improved following reports of a ceasefire agreement between Israel and Lebanon, pending Hezbollah’s confirmation. The potential de-escalation in the Middle East reduced demand for the safe-haven USD, supporting the Euro despite soft economic data.
Technical indicators for EUR/USD remain mixed, with the pair trading within a 1.1570-1.1660 range. The Relative Strength Index (RSI) hovers near neutral levels, reflecting ongoing uncertainty in the near-term outlook.