EUR/USD reverses its course, climbs on Friday, ignoring solid US Retail Sales data due to market participants still pricing in a Federal Reserve (Fed) rate cut in September. The pair trades at 1.1702, up 0.47%.

The market's attention turned to Anchorage, Alaska, for the summit of US President Donald Trump and Russian President Vladimir Putin, with analysts' expectations remaining low for achieving a ceasefire in Ukraine. Meanwhile, Trump said that he doesn't know what would make the reunion a success and that he would like to reach a truce before Washington and Moscow can talk about other issues.

According to some analysts, a truce would be bullish for the Euro, which, according to UBS analysts, would reach 1.21 against the US Dollar by the end of the year.

Aside from this, Retail Sales in the US were solid in July, while the June print was upwardly revised, signaling the strength of consumers. Nonetheless, the University of Michigan Consumer Sentiment survey in August showed a deterioration of American households, sparked by expectations of a reacceleration of inflation.

Across the pond, the following week's European Union (EU) economic schedule will feature Flash PMIs for the bloc to provide further evidence of a recovery in the manufacturing sector. Also, the EU and Germany's inflation figures could cement the case that the European Central Bank (ECB) can pause its easing cycle, providing further support for the shared currency.

Source: Fxstreet