EUR/USD is trading at $1.3054, up 0.1% on the day, after Germany revealed an increase in retail sales of 0.4% in May. Analysts had expected an increase of only 0.2%. Germany is the strongest economy in the eurozone, and this positive report boosted confidence, not only in the country, but also the European currency.
The euro is also higher on the back of the statements from US central bankers yesterday: William Dudley of the Federal Reserve stated there will not be any change to the Fed’s monetary policy until unemployment falls below 7%. Traders bought the euro and sold the US dollar, as they took this to be a sign that the Fed will keep pumping billions of dollars into the financial system in an effort to stimulate economic growth.
The US will reveal the latest Chicago PMI and University of Michigan consumer confidence figures at 2.45pm and 2.55pm respectively, and if the figures come in below expectations we could see the euro gain further ground versus the dollar.