EXECUTIVE SUMMARY
EUR/USD lost momentum and closed the week down 1.8%. The pair traded at the limit of 1.06 compared to 1.084 a week ago.
The announcement of an acceleration in inflation in the United States at the end of March to 3.5% further ruled out the possibility of a rate cut by the Fed in June. Additionally, U.S. data showed retail sales increasing at a faster-than-expected pace in March 2024, i.e. 0.7% versus consensus of 0.4%.
Furthermore, the exacerbation of the military conflict in the Middle East has enhanced investors' risk aversion. A situation which thus benefited the dollar, considered a safe-haven currency.
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