**EUR/USD Moves Higher Following Mixed U.S. Economic Data as Markets Eye Trump-Putin Meeting**
*Original Reporting By Justin McQueen for FXStreet, additional financial insights included.*
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### Market Overview: EUR/USD Edges Up After Mixed U.S. Data
The EUR/USD currency pair has experienced a modest uptick after a series of U.S. economic data releases sent mixed signals to investors. The dollar, which had strengthened previously on robust U.S. jobs data and hawkish commentary from Federal Reserve officials, softened slightly against the euro as traders digested the latest round of statistics. Meanwhile, attention is also turning toward the geopolitical arena, as investors anticipate the upcoming meeting between U.S. President Donald Trump and Russian President Vladimir Putin.
### Recent U.S. Economic Reports: Contrasting Results
On the data front, the U.S. released various economic indicators that had varying implications for the greenback and broader market risk sentiment. Here’s a breakdown:
– **Retail Sales:** The latest figures pointed to steady consumer spending, which remains a pillar of the U.S. economy. Retail sales in July rose 0.5 percent month-over-month, meeting analyst expectations. This signaled resilience in consumer demand, despite a backdrop of escalating trade tensions and geopolitical uncertainty.
– **Empire State Manufacturing Index:** The regional manufacturing index, published by the Federal Reserve Bank of New York, delivered a pleasant surprise, coming in above expectations. This reflected ongoing strength in the manufacturing sector and suggested that business sentiment remains robust.
– **Import & Export Prices:** Import prices showed a small increase, largely driven by higher fuel costs, while export prices remained stable. The data added little fresh direction for dollar traders but did suggest that inflationary pressure from trade and tariffs is not yet as pronounced as some had feared.
– **Other Indicators:** Additional data included a slight increase in business inventories and a subdued housing market report, further reinforcing the perception that the U.S. economic expansion, while intact, is losing some momentum.
#### Key Takeaways from the Data
– U.S. retail sales growth continues to underpin the economy.
– Manufacturing sentiment remains strong, as demonstrated by the Empire State survey.
– Inflationary pressures from trade, as indicated by import/export prices, remain contained for now.
### Eurozone Context: Modest Improvement in Sentiment
While the U.S. data garnered much of the attention, the euro also found some support from within the Eurozone. Although headline economic reports have not shown significant improvement, there are glimmers of optimism:
– **German Economic Sentiment:** The widely watched ZEW Survey of German Economic Sentiment edged higher, showing a slight improvement in expectations among German investors and analysts.
– **ECB Policy Outlook:** Investors do not anticipate any immediate change in policy from the European Central Bank (ECB), especially after its recent confirmation that interest rates will remain at historic lows through at least mid-2019.
– **Trade Tensions and Political Risks:** Ongoing U.S.-EU trade
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