The EUR/USD pair struggles to capitalize on its recent recovery gains registered over the past two days, from the 1.1585 support zone, and seesaws between tepid gains/minor losses heading into the European session on Monday.
Spot prices currently trade just above mid-1.1600s, nearly unchanged for the day, and move little following the release of the better-than-expected German Retail Sales figures
Official data released by Destatis showed that German Retail Sales, a key measure of consumer spending, declined again by 0.3% in April. The reading, however, was slightly above consensus estimates for a 0.4% fall and matched March’s upwardly revised reading of -0.3%. The EUR/USD pair draws some support from the upbeat macro data, though a broadly firmer US Dollar (USD) keeps a lid on any meaningful upside.
The USD Index (DXY), which tracks the Greenback against a basket of currencies, moves away from a two-week low, touched on Friday, amid persistent geopolitical uncertainties and hawkish US Federal Reserve (Fed) expectations. Major US-Iran differences over Tehran’s nuclear program and the Strait of Hormuz have complicated diplomatic efforts to reach a deal to end an over three-month-old conflict in the Middle East. Iran’s chief negotiator, Mohammad Bagher Qalibaf, stated that the country will not accept any agreement until its national rights are fully secured.