The US dollar depreciation caused by the data on the US services sector was offset by the euro’s drop amid disappointing data from the eurozone.According to the data, in the eurozone, consumption remains very low. What is more, in April, retail sales showed zero growth instead of a 0.2% rise. Thus, sales of food and fuel dropped, whereas sales of non-food products surged.Data from Germany also turned out to be gloomy. Thus, the eurozone largest economy has been reporting a negative dynamic in its industrial sector for the second month in a row. In April, factory orders decreased by 0.4%.All the reports point to a decline in demand amid the hawkish stance of the European Central Bank. Meanwhile, Christine Lagarde is dropping hints about a further key rate hike. Ignoring alarming signals, yesterday, the ECB president expressed concerns about high inflation.Judging by the trading chart, investors are paying zero attention to the plans of the ECB and are pricing in only news about the Fed’s future policy.In this light, the euro/dollar pair changed its direction near 1.0680 amid slower growth in business activity of the US services sector. As a result, the euro partially recouped its losses. Notably, the euro is still in the oversold area against the US dollar, which causes sharp drops.However, it is too early to talk about the upward price reversal. The fundamental data will hardly encourage traders to buy the single currency. That is why if the pair slides below 1.0680, it may drop even deeper despite oversold conditions. If the price manages to climb above 1.0750 and consolidate there, especially on the four-hour chart, the situation will change in favor of buyers. Meanwhile, the pound/dollar pair reached the support level of 1.2350 because of a rapid decrease. As a result, the volume of short positions dropped and the price rebounded. This allowed the pound sterling to recover after the recent slump. Under the current conditions, consolidation above 1.2450 may lead to a further increase in the pound sterling. However, traders will consider a downward movement if the price drops below 1.2400. In the event of this, the support level of 1.2350 could be broken.

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00:00 INTRO
00:13 EUROZONE RETAIL SALES, M/M
00:33 GERMANY FACTORY ORDERS, M/M
00:50 ECB KEY INTEREST RATE:
01:10 EUR | USD
02:19 GBP | USD