**EUR/USD Strengthens Following Mixed US Data: Markets Turn Attention to Trump-Putin Summit**
*Adapted and expanded from the original article by FXStreet Staff at FXStreet.com*
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The EUR/USD currency pair edged higher during the US trading session as the latest batch of US economic data delivered a mixed picture. Following the releases, market participants shifted their attention to the then-upcoming meeting between US President Donald Trump and Russian President Vladimir Putin in Helsinki. The summit fueled additional speculation about potential geopolitical shifts and their consequences for financial markets.
This article analyzes the underlying factors influencing EUR/USD, reviews the US economic indicators, and explores the anticipated impact of major geopolitical developments, also referencing insights from multiple reputable financial outlets.
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### Mixed US Economic Data Moves the Euro Higher
The US economic calendar remained a focal point for forex traders. Data released for the period was not uniformly strong, leading to slight pressure on the US dollar and providing the euro with an opportunity to regain ground.
#### Key Data Points Included:
– **Retail Sales:**
US retail sales for June rose by 0.5 percent, surpassing the market consensus of 0.4 percent. However, May’s print was revised downward to 1.3 percent from 0.8 percent. The core figure, excluding auto sales, climbed by 0.4 percent, also above expectations.
– **Empire State Manufacturing Index:**
The New York Fed’s Empire Manufacturing index, a measure of regional manufacturing activity, fell to 22.6 from 25.0, still a robust figure but less than many analysts had forecast.
– **Other Indicators:**
Additional data, such as the business inventories report, indicated an 0.4 percent rise, matching expectations.
The initial knee-jerk reaction in the forex market favored the dollar due to the headline retail sales beat. However, the subsequent realization that previous numbers were revised downward and that some sub-indices underperformed led to dollar softness. As a result, EUR/USD took advantage and moved closer to 1.1700.
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### Euro Finds Reprieve Amid US Dollar Pullback
The US dollar index (DXY) had been trending higher earlier, primarily supported by expectations of continued monetary tightening by the US Federal Reserve. However, the mixed economic signals, especially with the negative revision to May’s retail sales, generated doubts as to whether the Fed would maintain an aggressive pace.
Key considerations for the euro included:
– **Positioning and Technical Levels:**
The currency pair had previously dipped below 1.1600 but found technical support, prompting buyers to enter the market.
– **Eurozone Fundamentals:**
While the Eurozone’s economic data remained somewhat subdued, the relative performance of the dollar amidst uncertainty kept downside in check for the euro.
– **Central Bank Policy Divergence:**
Although the European Central Bank (ECB) was expected to maintain a dovish outlook for a prolonged period, a softening Fed stance
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