U.S. Dollar Pulls Back As Retail Sales Miss Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Losing Ground After Retail Sales Report

U.S. Dollar Index is moving lower as traders react to the Retail Sales report. The report indicated that Retail Sales increased by 0.4% month-over-month in December, compared to analyst forecast of +0.6%.

In case U.S. Dollar Index says below the 109.00 level, it will head towards the nearest support, which is located in the 108.30 – 108.50 range.

EUR/USD Attempts To Settle Back Above 1.0300

EUR/USD gains ground as traders focus on inflation data from Germany. Inflation Rate increased by 0.5% month-over-month in December, compared to analyst forecast of +0.4%.

If EUR/USD manages to settle above the 1.0300 level, it will move towards the nearest resistance level at 1.0330 – 1.0345.

GBP/USD Moves Higher Despite Disappointing UK GDP Data

GBP/USD is moving higher as traders focus on UK GDP report. The report showed that GDP increased by 0.1% month-over-month in November, compared to analyst forecast of +0.2%.

A move above the 1.2250 level will push GBP/USD towards the 50 MA at 1.2302. If GBP/USD climbs above the 50 MA, it will head towards the resistance at 1.2355 – 1.2370.

USD/CAD Rebounds As Oil Markets Pull Back

USD/CAD is moving higher as traders react to the pullback in the oil markets. Other commodity-related currencies are swinging between gains and losses in today’s trading session.

In case USD/CAD stays above the 50 MA at 1.4371, it will move towards the recent highs near the 1.4460 level.

USD/JPY Remains Under Pressure

USD/JPY tests new lows as Treasury yields are moving lower. The yield of 2-year Treasuries declined below the 4.25% level, while the yield of 10-year Treasuries settled near 4.62%.

If USD/JPY manages to settle below the 155.00 level, it will head towards the support level at 153.50 – 154.00.

For a look at all of today’s economic events, check out our economic calendar.