It a big day for the US dollar and the Dollar index sitting near to key support level of $93.50. The traders and investors remained cautious of FOMC interest rate decision and the Fed Chair Jerome Powell press conference. Fed is expected to hold its federal fund's rate steady and the key focus will be on the FED statement.
It is a busy week ahead for both the US Dollar and the Euro. Both Eurozone and US will publish their second-quarter GDP numbers on Thursday. EUR/USD started the week on positive note supported by a weaker US dollar and during the European session, the pair retreated to below 1.1700 from the daily high of 1.1725.
UK retail sales recovered to the near pre-pandemic levels; the index records the volume of all goods sold by retailers monthly. The National Statistical Office (ONS) reported today the UK retail sales for the month of June climbed 13.9%, bigger than economists' forecasts of an 8% rise. Growth in sales, excluding auto fuel, improved to 13.5% in June from 10.6% a month ago.
The tech giant Microsoft released fourth-quarter earnings on Wednesday after the market close. The company Q4 financial results exceeded expectations boosted by its outperformance in its commercial cloud business.
EUR/USD climbed to a fresh year high of 1.1545 on Tuesday. The currency gained after the EU leaders reached a deal on a coronavirus recovery package worth €750 billion and the pair also supported by the weaker dollar. The dollar index dropped to its lowest since early March on Wednesday during the Asian session.