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Euro slips as stronger US jobless claims bolster the US dollar

EUR/USD is trading around 1.1436, down about 0.2%, after US initial jobless claims fell to 208K versus expectations of 217K.

Reported · Written up by our desk · Major Pairs

EUR/USD is edging lower near 1.1440, retreating around 0.2% as the US dollar firms on stronger-than-expected US labor market data, FXStreet reports. The move follows a drop in US initial jobless claims to 208K for the week ending July 11, below expectations of 217K and the prior reading of 216K.

FXStreet also points to retail sales data that was broadly in line with forecasts but showed cooling momentum. US retail sales rose 0.2% month over month in June, and the retail sales control group gained 0.5%, both matching consensus but down from May.

In the euro area, investors are looking ahead to June inflation data, with core HICP expected to hold at 2.4% year over year and 0.2% month over month, while headline HICP is forecast to decline 0.1% on the month. A softer inflation print could reinforce expectations for a less restrictive ECB stance and add pressure to the euro, FXStreet says.

On the technical side, EUR/USD is holding a mildly bullish tone on the 4-hour chart while above the 20-period SMA near 1.1428 and the 100-period SMA around 1.1413. FXStreet notes resistance levels near 1.1447 and higher bands above, while a sustained move below the 100-period SMA would weaken the constructive outlook.

Latest closeEUR/USD 1.147 ▲0.8%

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