EUR/USD with A Slight Change After Strong US Data

The euro recorded minor changes against the dollar. There was no much activity on Friday as trading between the euro and the dollar was light. The trading came as the US consumer sentiment released a report that showed that the dollar would continue with the increase. Despite the positive report, uncertainty persisted about the stimulus program organized by the Federal Reserve.

The EUR/USD has weakened after strong gains. The pair was silent as it traded about the 1.3270 mark. Friday's calendar has only three releases of the trading schedule. In the US, the major activity was the release of the amended UoM consumer opinion. The indicator had posted that the dollar will be stronger. The release recorded two strong readings of the dollar. While the dollar was high, minor expected changes are to be witnessed in the coming releases. In the euro zone, import prices in Germany declined for the fourth time. The decline indicator went down from -0.4% to -0.8%. This decline was way off the projected 0.4% gain.

The EUR/USD pair hit the 1.3296 mark in the morning trade. The pair further gained strength to consolidate the 1.3268 mark. This is a 0.02% gain. On Thursday, the euro took advantage of the weak US numbers to gain a cent.  The dollar weakened due to claims that unemployment in America was heightening. According to the report, the unemployment was rising from 334,000 to 343,000. This figure is too high compared to the estimated 339,000. Other than the dollar dropping due to these claims, the order for durable goods also dropped, with the report showing that the orders dropped from 0.7% to 0.0%.

A report released by university of Michigan said that the dollar index of consumer sentiment rose in July. The rise in the index was more that the expected margin. According to the report, the dollar increased from 83.9 the previous month to 85.1 this. According to analysts, the dollar was expected to rise to 84.0 this month.

The report further said that inflation expectations fell from 3.3% to 3.1%. While the dollar was gaining, the euro traded lower against the pound with the EUR / GBP pair ending trading at 0.8625. This was a 0.07% dip from last month.

The CAD has been withdrawing gradually against the US dollar. However, on Tuesday, it was good news for the Canadian dollar as it got a sales boost. The boost came when the market mover, key releases, and the core retail sales jumped by 1.2%. The increase in sales came as shocking to many investors who had not expected such a huge increase in sales.

In addition to the rise of the international sales, retail sales of the Canadian dollar also kept pace with the international sales. The retail sales were increased by a 1.9%, which crossed the expected sales of 0.4%.  Both retail and international sales were the highest since May 2010. Not only did the Canadian dollar increase in sales, but it also improved on the news. While the Canadian dollar increased, the USD/CAD pair fallen below the 1.03 mark. This is the first time the pair has stooped too low since late-June.