EUR/USD remains sideways around 1.0000, US Michigan CSI eyed
- EUR/USD is juggling around 1.0000 as investors await US Michigan CSI data.
- An upbeat US Retail Sales data will strengthen the Fed in tightening policy further.
- The Eurozone energy crisis is deepening further ahead of the winter season.
The EUR/USD pair is continuously oscillating around the critical figure of 1.0000 amid the unavailability of any potential trigger that could direct a decisive move. Generally, after falling like a house of cards, assets take sufficient time to build a ground for decisive moves. Considering the unavailability of a decent pullback move, the asset is expected to deliver a downside break.
On Thursday, the US dollar index (DXY) hold itself at elevated levels after the release of upbeat Retail Sales data. The economic data landed at 0.3%, higher than the expectations of 0% and the prior release of -0.4%.
The Federal Reserve (Fed) is bound to bring price stability even at the sacrifice of employment generation, growth prospects, and investments. As price pressures are not responding effectively to rising interest rates, it will force the Fed to tighten its policy further. Therefore, chances for a full percent rate hike have advanced significantly. Also, a rebound in retail demand will delight the Fed to restrict monetary policy with full power unhesitatingly.
The US economy will conclude the week with the release of the US Michigan Consumer Sentiment Index, which is seen higher at 60 against the prior release of 58.2. A higher-than-expected reading will strengthen the greenback bulls further.
On the Eurozone front, investors are gearing up for further policy tightening measures. European Central Bank (ECB) policymakers have admitted that the central bank underestimated the pace of inflation and is now facing extreme hurdles in containing the same. This has soared fears of stagflation. Also, the deepening energy crisis ahead of the winter season will keep the shared currency bulls on the tenterhooks.