Euro Down Following a Two-Day Losing Run

London: 8 November 2023 (TraderMade): Wednesday sees the Euro down following a two-day losing run.

EURUSD latest update

The EURUSD exchange rate is down 0.30% at 1.06671 during the European session, compared to yesterday's close at 1.06997. Stay tuned with EURUSD Live Rates.

Retail sales decline in the Eurozone

Retail sales in the Eurozone fell to -2.9% y/y in September, leading to the eleventh consecutive month of fall. It suggests that high prices and high borrowing rates are squeezing consumers.

Retail sales fell by 0.3% on a monthly basis, which was less than the -0.2% market forecast and less than the -0.7% decrease in August.

The US Dollar Strengthens

The US dollar has strengthened recently due to US exceptionalism, whereas the Euro has plummeted by as much as 9.5% since July. Friday's weak nonfarm payrolls imply that the country's economy is still robust, and the Fed is unlikely to lower interest rates very soon.

The markets will closely watch Fed Chair Powell's public statement later today, to get insights on the Fed's continued adherence to its "higher for longer" position on interest rates.

Friday's dismal nonfarm payrolls report supports the idea that rates have peaked. The scenario implies that unless the Eurozone has a robust recovery, the Euro will struggle to keep up with the dollar.