The greenback was marginally higher against the European currencies and turned lower against the Japanese yen on Thursday. Suh a behavior shows that despite some improvement in risk sentiment, investors remain cautious against the backdrop of the ongoing US-China trade war and other geopolitical concerns.
Today, the US retail sales is the key event of the day. Traders will assess the release very thoroughly in the light of recent Fed’s dovish hints and some weak economic data. It is widely expected that retail sales rebounded in May after a drop by 0.2% during the previous month. Industrial production data will important as well.
Depending on the general economic picture, investors will further build their expectations on further Federal Reserve’s steps in monetary policy. Disappointing figures could fuel pricing in a rate cut this year amid worries about the potential consequences from the US-China trade war for the economy.
In the dollar-negative scenario, EURUSD may easily get back above the 1.13 barrier and even challenge the 1.1350 area that caps the upside momentum these days. However, the potential rally could be short-lived as the greenback continues to derive some support as a safe-haven currency.