EUR/USD could be in for a decent correction on a close above the 1.0610/1.0615 area – ING

The highlight of today's FX session should be the release of September's US Retail Sales data. Economists at ING analyze how the figures could impact EUR/USD.

EUR/USD will be largely determined by the US Retail Sales release

EUR/USD has edged slightly higher on the back of a mildly positive equity environment. In the background, we also see China-linked commodities such as Iron Ore doing quite well – perhaps on the back of more fiscal and monetary stimulus expected from China. This is slightly supportive for the growth-oriented Euro. 

We suspect today's path for EUR/USD will be largely determined by the US Retail Sales release. If we're right about the risks of a softer number, EUR/USD could push through intra-day resistance at 1.0575/1.0585 towards the 1.0610/1.0615 area. Any close above there suggests EUR/USD could be in for a decent correction after all.

See – US Retail Sales Preview: Forecasts from six major banks, tepid gains after surging since spring