Ella 
EUR/USD was trading weaker around $1.0915 during Wednesday’s Asian trading session, after retracing from seven-month highs near $1.1008. A stronger U.S. dollar dragged the pair lower. Investors were awaiting German June trade balance and industrial production data due later in the day.
Resurgent risk sentiment and high U.S. Treasury yields provided some support for the dollar. However, investors expect the Federal Reserve to cut interest rates more aggressively starting in September. This, in turn, could limit the dollar’s upside and be a boon for EUR/USD. Meanwhile, markets have raised the probability of a 50 basis point rate cut by the Fed in September to 69.5% from 13.2% last week, according to the CME FedWatch tool.
In the United States, data released by the U.S. Census Bureau on Tuesday showed that the U.S. trade deficit narrowed to $73.1 billion in June as exports of goods and services hit the largest increase since earlier this year.
On the other hand, evidence of a weaker euro zone economy has put some selling pressure on the euro (EUR). Data released by Eurostat on Tuesday showed that retail sales in the euro zone unexpectedly fell by 0.3% in June, after rising by 0.5% previously. The consensus was for growth of 0.1%.
