Eurozone Retail Data Weakens, Pressuring Euro; Market Awaits US Nonfarm Payrolls

【Eurozone Retail Data Weakens, Pressuring Euro; Market Awaits US Nonfarm Payrolls】

(1) EUR/USD retreated from the previous day's high of 1.1270 to around 1.1165, with risk-off sentiment weighing on the euro, though it posted a slight weekly gain.

(2) Eurozone retail sales fell 0.7% month-on-month in September, missing expectations; despite a slight improvement in German industrial output, it failed to provide support for the euro.

(3) US tech stocks faced a sell-off amid concerns over tighter AI industry regulation, with safe-haven flows boosting the US dollar.

(4) This week's US employment leading indicators were broadly firm, with initial jobless claims, ADP, and job openings data coming in positive; if nonfarm payrolls maintain strength, it would further benefit the dollar.

(5) Institutions assess that US economic resilience persists with sticky inflation, keeping the Fed on a tightening path, a macro environment favoring dollar strength.