Feb. 5: European session
Euro zone’s retail sales came out even worse than expected: the indicator contracted by 1.6%, while economists were expecting a decline by only 0.7%. EUR/USD keeps consolidating in the $1.3515 area. The region’s services PMI came mixed. Volatility is low ahead of the ECB’s meeting tomorrow.
GBP/USD slid to $1.6265 as UK services PMI came below the forecast (58.3 vs. 59.1). Still this is much higher than the 50.0 threshold and British service industry’s expanding. Decline below $1.6250 should see the bearish momentum accelerating. Resistance is at $1.6350.