EUR/USD trades below 1.0500 after snapping winning streak
EUR/USD snapped a four-day winning streak, hovering around 1.0490 during Asian trading hours. Liquidity during the North American session may remain thin as all major US financial markets will be closed on Monday for the federal holiday, Presidents Day.
The EUR/USD pair gained recently on the back of a delay in the implementation of US President Donald Trump’s reciprocal tariffs, which took longer than analysts had anticipated. Moreover, disappointing US economic data has weighed on the US Dollar (USD), lending further support to the EUR/USD pair. A weaker-than-expected US retail sales report has reignited speculation that the Federal Reserve (Fed) could cut interest rates later this year, despite ongoing inflation concerns.
Data from the US Census Bureau on Friday showed that US Retail Sales fell by 0.9% in January, following a revised 0.7% increase in December (previously reported as 0.4%). The decline was sharper than market expectations of 0.1%.
Meanwhile, JP Morgan notes that the EUR/USD pair could rise by up to 5% if a ceasefire in Ukraine is agreed and gas supplies are resumed. Reports suggest that Trump and Russian President Vladimir Putin have agreed to start negotiations to end the conflict. Sources cited by the BBC suggest that Trump administration officials will meet with their Russian counterparts in Saudi Arabia on Tuesday to discuss a possible peace deal.
Source: FXStreet