EUR/USD dips as German retail sales disappoint despite upward revisions

EUR/USD edged lower by 0.1% to 1.0825 following weaker-than-expected German retail sales data for April. Monthly retail sales contracted 1.1%, significantly missing the 0.2% growth forecast, though prior month figures were revised higher from -0.2% to show stronger performance. The year-over-year reading came in at 2.3%, beating expectations of 1.8% and improving from the revised 2.2% previous reading. Despite the headline miss, the positive revisions and volatile nature of retail sales data limited the euro's downside. Market participants remain focused on the European Central Bank's policy trajectory, with this data unlikely to alter expectations for gradual rate cuts. Technical resistance for EUR/USD sits at 1.0850, while support emerges near 1.0800. The mixed data suggests continued range-bound trading for the pair in the near term.