• US Retail Sales missed the mark on Thursday, driving down the US Dollar.
• The Euro caught a leg up, putting more distance above the 1.0700 handle.
• Friday wraps up the trading week with US PPI figures, Michigan sentiment survey.

EUR/USD gained ground on Thursday, extending a rebound from the 1.0700 handle after the pair flubbed technical levels earlier in the week. The European Commission revised down its Economic Growth Forecasts, and US Retail Sales showed an unexpected contraction in consumer spending activity.

Daily digest market movers: EUR/USD pares recent losses as investors pivot on US Dollar

• US Retail Sales shrank 0.8% MoM in January, well below the -0.1% forecast compared to the previous month’s 0.4% (revised down from 0.6%).
• US Core Retail Sales (excluding Automobiles) also declined 0.6% in January, reversing the forecast 0.2% uptick compared to December’s 0.6% (revised 0.8%).
• Investors hungry for rate cuts from the Federal Reserver (Fed) dog-piled on the US data miss, as a softening US economic landscape increases odds of a Fed rate trim.
• US Initial Jobless Claims came in below expectations, printing at 212K for the week ended February 9 versus the forecast 220K.
• The previous week’s Initial Jobless Claims also saw a revision to 220K from 218K.
• The European Commission lowered economic growth projections for the euro area and the broader European economy.
• The European Commission expected pan-EU growth to hit 0.9% through 2024, with annual growth for the euro area to see only 0.8%.
• Economic growth is expected to tick back up in 2025, with the EU expected to see 1.7% growth with the euro area trailing with 1.5% overall growth.
• Pan-EU HICP inflation is forecast to settle to 3.0% in 2024 and 2.5% in 2025, down from 2023’s 6.3%.
• Friday's US Core Producer Price Index (PPI) is forecast to tick down to 1.6% from 1.8% for the year ended in January.
• The Michigan Consumer Sentiment Index is expected to improve slightly to 80.0 from 79.0