US Dollar Index Reaches 8-Month Low

Traders are in a wait and watch mode in the lead up to major events on the docket in the coming session including the ECB’s Governing Council meeting on Thursday. While the Central Bank is not expected to tinker with interest rates or make changes to its asset purchase program, market participants will be putting President Mario Draghi's statement for his views on the Euro Zone economy under a microscope. Also in focus will be former FBI director James Comey’s testimony before the US Congress later tomorrow. Although new reports paint a high likelihood of Comey giving evidence about Russia’s alleged collusion with President Donald Trump’s campaign team, there is still room for surprises. Investors are worried that his testimony could dampen the already flagging momentum for Trump's growth agenda. The US dollar has already shed -0.90% against the Yen this week, with USDJPY last seen around the 109.400-mark.

Retail sales in the Euro Area grew marginally in April, marking the fourth straight monthly gain as shoppers increased their purchases of food and drinks ahead of the Easter holiday. On a month-on-month basis, the volume of sales in the 19 countries that share the Euro rose by 0.10% in April according to the data compiled by the European Union's statistics office Eurostat. Although the figure missed the consensus estimate of analysts expecting 0.20% growth, retail sales rose 2.50% compared to the same period a year ago, managing to top expectations of a 2.30% climb. Food and drinks were the main areas leading the gains in retail activity, accounting for a 0.60% monthly incline. In the meantime, EURUSD is trading just below a seven-month high, with the pair currently perched around strong resistance at 1.1270.