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  • EUR/USD is reporting a 1.76% month-to-date loss at press time. 
  • An above-forecast German retail sales number may offer respite to the bulls. 
  • Later today, the focus will be on Eurozone GDP and US Personal Spending data.

EUR/USD is on track to post its biggest monthly decline in six months. 

At press time, the currency pair is trading at 1.1025, representing a 1.76% drop from the monthly opening rate of 1.1222. That is the biggest monthly loss since July 2019. Back then, the pair had dropped by 2.58%. 

Eyes German retail sales

Consumer spending, as represented by Retail Sales, is forecasted to have dropped by 0.5 month-on-month in December, following November’s 2.1% rise. 

The annualized figure is expected to have risen by 5% compared to November’s 2.1% rise. 

The Euro had rallied from 1.1157 to 1.1205 on Jan 6 on the back of an above-forecast November Retail Sales print. 

A similar action could be seen today if the retail sales beat estimates – more so, as the daily chart is reporting signs of seller exhaustion near 1.10. 

However, if the data prints below estimates, sellers may try to force a convincing break below 1.10. 

Later in the day, the focus will be on the Eurozone Gross Domestic Product (GDP) for the fourth quarter and the US Personal Spending and Personal Income numbers.

Technical levels