FX markets show heightened sensitivity to second-tier economic data

Foreign exchange markets are displaying unusually high sensitivity to second-tier economic indicators, with EUR/USD, GBP/USD, and USD/JPY experiencing amplified reactions to typically lower-impact data releases. EUR/USD jumped 0.4% to 1.0975 following minor improvements in German industrial production, while GBP/USD rallied to 1.3510 on UK retail sales beats. This heightened sensitivity reflects growing uncertainty about major central bank policy trajectories, with markets seeking any clues about future rate decisions. USD/JPY declined to 148.50 as risk sentiment wobbled, benefiting the safe-haven yen. EUR/GBP remains range-bound near 0.8120, suggesting relative stability between European currencies. Analysts attribute this increased data sensitivity to thin liquidity conditions and positioning ahead of next week's major central bank meetings. Technical analysis shows most major pairs approaching key resistance levels, suggesting potential for sharp reversals if upcoming data disappoints elevated market expectations.