EUR/USD Surges Past 1.1570 as Weak US Retail Sales Fuel Bullish Momentum

EURUSD gained sharply after US retail sales came below estimate. The pair hits a intraday high of 1.15783. It is currently trading around 1.15676.

US retail sales rose 0.2% in July, a modest uptick from June’s 0.1% gain but below the 0.3% consensus, signaling that consumers are still spending but at a slower pace amid cooling inflation and steady wage growth. Underlying demand proved resilient, with the “control group” measure (excluding autos, gasoline, building materials, and food services) surging 0.5% month-over-month from 0.3%, pointing to solid third-quarter GDP momentum and continued upward pressure on core inflation. While retail sales excluding autos dipped 0.2%, sales excluding both gasoline and automobiles climbed 0.4%, reflecting volatile auto demand but broader strength across essential and discretionary categories. Combined with an earlier-than-expected 0.4% rise in core PPI, the data reinforce a picture of stable growth with sticky inflation, prompting markets to scale back expectations for a September Fed rate cut as policymakers weigh robust consumer activity against persistent price pressures.

Major support- 1.13700/1.12946. Near-term resistance- 1.15800/1.1660/1.1700.

It is good to buy on dips around 1.15600 with SL around 1.15100 for a TP of 1.1660.