EUR/USD Rises as Euro Holds Steady Against Dovish ECB Expectations

Subdued US Economic Data Supports Euro Against US Dollar in EUR/USD Trade

EUR/USD traded slightly higher, closing at 1.1200 during Friday's North American session. The Euro remained firm despite the European Central Bank's (ECB) dovish position, while the US Dollar regained stability following a decline in response to weaker-than-expected economic data from the United States.

The US Dollar Index (DXY), which tracks the value of the USD against six major currencies, hovered around 100.80. On Thursday, the USD experienced selling pressure, exacerbated by the drop in US bond yields after disappointing Producer Price Index (PPI) and Retail Sales figures were released.

The PPI showed a surprising dip in April, driven mainly by a 0.7% decline in service prices, which outweighed flat growth in goods prices. Retail Sales also underperformed, posting only a modest 0.1% growth, a significant slowdown from the 1.5% increase seen in March. This reflected decreased car demand, as households delayed purchases after dealers raised prices to offset the effects of tariffs on foreign vehicles imposed by President Donald Trump.

Traders are now awaiting the release of US consumer sentiment and inflation expectations data to gauge the broader economic outlook.