Strong US Retail Data Expected to Boost Dollar, Euro Likely to Remain Under Pressure

Jens Naervig Pedersen, Head of Foreign Exchange and Rate Strategy at Danske Bank Research Center, has stated that robust US retail data could potentially uplift the dollar and further weigh down the euro against the dollar.

The euro dipped below 1.09 against the dollar on Monday, hitting its lowest level in over five weeks, and has been on a downward trajectory for the past month.

Recent moderately strong US CPI data did not trigger a sustained cyclical decline in the dollar.

Meanwhile, the growth prospects in the Eurozone seem to be deteriorating, and this pattern is expected to continue putting pressure on the euro against the dollar.