Ella 
In the Asian market on Thursday, the EUR/USD was trading near 1.0750, and may expand its losses for the third consecutive trading day. The dollar gained on expectations that the Federal Reserve (Fed) will keep interest rates at higher levels. Additionally, higher U.S. bond yields provided support for the U.S. dollar (USD), weighing on the EUR/USD currency pair.
In addition, hawkish speeches from Federal Reserve officials also supported the dollar. According to Reuters, Boston Federal Reserve President Susan Collins said on Wednesday that the U.S. economy will need to moderate for a period of time to achieve the 2% inflation target. On Tuesday, Minneapolis Fed President Neel Kashkari said the current expectation is for interest rates to remain unchanged for a considerable period of time. Although a rate hike is unlikely, it has not been completely ruled out.
In euros, monthly retail sales rose sharply by 0.8% in March, rebounding from a downwardly revised -0.3% reading in February. This marks the largest increase in retail activity since September 2022 and demonstrates the strength of Europe’s consumer sector. In addition, retail sales (annual rate) increased by 0.7%, compared with a revised -0.5% in February, indicating that the retail industry has increased for the first time since September 2022, and also indicates that consumer spending trends are improving.
