Retail sales in the United States surged 0.60% in July, easily topping economists' estimate of a 0.40% gain to post their biggest rise in seven months as consumers increased their discretionary spending and bought more cars. An unexpectedly strong reading in an index on New York manufacturing activity added to confidence in the outlook.
The Empire State Manufacturing index climbed 15.40 points to 25.20, its highest level in close to three years. The greenback also gained from a revival in investor risk appetite after fears of an armed conflict between the United States and North Korea continued to ease considerably compared to the prior week. EURUSD is currently hovering around 1.1735, with any break below strong support at 1.1685 potentially unlocking a fresh wave of selling which could push the pair lower.