• EUR/USD loses traction around 1.0730 as markets turn cautious in Thursday’s early European session. 
• The worries about the Eurozone political uncertainty in the Eurozone continue to undermine the Euro. 
• The Fed’s wait-and-see mode might boost the Greenback despite the recent weaker US Retail Sales data. 

The EUR/USD pair weakens near 1.0730, snapping the three-day winning streak during the early European session on Thursday. However, the upside for the pair seems limited as investors are worried about the political uncertainty in the Eurozone. Investors will closely watch the preliminary Eurozone and US Purchasing Managers Index (PMI) for June, which are due on Friday. 

The cautious mood by the calling of a snap election in France after a defeat by the far-right National Rally raised fear of Eurozone political uncertainty and weighed on the Euro (EUR). Furthermore, the divergence in monetary policy between the Eurozone and the US might further drag the shared currency lower. On Wednesday, the European Central Bank (ECB) Governing Council member Mario Centeno said that the central bank can ease monetary policy further so long as inflation continues to moderate