Ella 
In Asia on Tuesday, EUR/USD fell for the sixth consecutive trading day, trading around 1.0610. A rise in the U.S. dollar weighed on the EUR/USD pair due to the potential impact of higher U.S. Treasury yields. In addition, U.S. (US) retail sales data were better than expected, increasing expectations that the Federal Reserve (Fed) may maintain higher interest rates for a longer period of time.
The U.S. dollar index (DXY) expanded its gains to around 106.20. As of press time, the 2-year U.S. Treasury yield and the 10-year U.S. Treasury yield were 4.92% and 4.60% respectively. Escalating geopolitical tensions in the Middle East have prompted investors to seek the safe-haven currency, the U.S. dollar.
U.S. retail sales rose 0.7% monthly in March, beating market expectations of 0.3%. The previous reading was revised to 0.9% from 0.6% in February. Retail sales control group increased by 1.1%, compared with the previous increase of 0.3%.
Mary Daly, president of the Federal Reserve Bank of San Francisco (Fed), recently said that although there has been significant progress on inflation, there is still more work to be done. Daly emphasized that before taking action, one must be confident that inflation is moving towards the target. Daly also emphasized that economic growth is solid, the labor market remains strong, and inflation is currently above target.
The euro fell after dovish comments from European Central Bank officials on Monday. ECB Governing Council member Gediminas Šimkus said there was more than a 50% chance of more than three interest rate cuts this year, Reuters reported.
