Ella 
During the Asian session on Thursday, EUR/USD was hovering around 1.0710. EUR/USD has no clear direction and no clear trend. However, the euro rose on mixed economic data from the euro zone and Germany.
Eurostat’s report on Wednesday showed that retail sales fell at a monthly rate of -0.3% in September, in sharp contrast to -0.7% in August. Market expectations were -0.2%, which was slightly off from the actual figure. The monthly retail sales rate in September was -2.9%, exceeding the previous value of -1.8%, but higher than the expected value of -3.2%.
As expected, Germany’s Harmonized Consumer Price Index was steady at both the monthly and annual rates in October. Germany’s Harmonized Consumer Price Index recorded a monthly rate of -0.2% in October, while the annual rate was steady at 3.0%.
In addition, China’s consumer price index (CPI) in October came in at an annualized rate of -0.2%, slightly higher than the -0.1% forecast. In addition, the monthly inflation rate recorded -0.1%, compared with the previous value of 0.2%.
On the other hand, falling U.S. bond yields put pressure on the U.S. dollar (USD) due to positive market sentiment. At press time, the U.S. dollar index was trading lower at around 105.50, closing in the red for the second consecutive day. However, Fed officials denied the prospect of lowering interest rates, which could help support the dollar.
Federal Reserve Governor Michelle Bowman reinforced the view that the central bank is considering raising short-term interest rates in the future. Meanwhile, Minnesota Fed President Neil Kashkari expressed doubts that the central bank has gone far enough to raise interest rates. He cited the economy’s resilience as a factor in his view.
Investors may look to the upcoming release of U.S. initial jobless claims for last week to understand its potential impact on the market. In addition, the market is also looking forward to Federal Reserve Chairman Powell’s high opinion on the current economic situation. Powell will participate in a panel discussion later in the day.
