The EUR/USD is trying to hold on at 1.13 support as the US$ closed lower for the day. The softer US$ helped to lift Gold and the Cable but the AUD/USD is a bit weaker and the Kiwi is holding steady. US stocks closed a bit lower as market participants continue to digest inflation implications.

The US$ has lifted higher on the back of better than expected US Retail Sales data and strong retail earnings from Walmart and Home Depot. This has put pressure on the EUR/USD with the key 1.13 level looming.

The US$ has edged higher to start the week but stocks are little changed ahead of a week of US retail earnings and today’s US$ Retail Sales data. There is also a meeting between President Biden and President Xi Jinping worth monitoring for any potential impact on market sentiment. 

The high print for US CPI has driven the US$ up and US stocks down. There were sharp moves across Forex pairs but watch key S/R levels once this dust settles.

The stock rally has paused ahead of key US inflation data due out later today. Gold is higher though and has broken up through the multi month bear trend line but the EUR/USD remains near 1.16.