U.S. Dollar Retreats: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Lows

U.S. Dollar Index pulled back as traders focused on dovish Fed policy outlook and waited for additional economic data.

If U.S. Dollar Index stays below the 99.50 level, it will move towards the support at 98.85 – 99.00.

EUR/USD Gains Ground As Germany’s Inflation Rate Stays At 2.3%

EUR/USD continues its attempts to settle above the 1.1600 level as traders focus on Germany’s inflation data. Inflation Rate remained unchanged at 2.3% in November, compared to analyst forecast of 2.4%. Today, traders also had a chance to take a look at Germany’s Retail Sales report. The report indicated that Retail Sales decreased by -0.3% month-over-month in October, compared to analyst consensus of +0.2%.

A successful test of the resistance at 1.1585 – 1.1600 will push EUR/USD towards the next resistance level at 1.1715 – 1.1730.

GBP/USD Attempts To Settle Above 1.3250

GBP/USD tests resistance at 1.3250 – 1.3265 as traders focus on general weakness of the American currency.

A move above the 1.3265 level will push GBP/USD towards the next resistance at 1.3360 – 1.3375.

USD/CAD Is Under Pressure As Silver Tests Historic Highs

USD/CAD tests new lows as traders focus on the strong rally in precious metals markets. Other commodity-related currencies are also moving higher in today’s trading session.

In case USD/CAD stays below the support at 1.3975 – 1.3990, it will move towards the next support level, which is located in the 1.3885 – 1.3900 range.

USD/JPY Remains Stuck Above 156.00 As Traders React To Japan’s Retail Sales Data

USD/JPY is swinging between gains and losses as traders focus on Japan’s Retail Sales report. The report showed that Retail Sales increased by +1.7% year-over-year, compared to analyst forecast of +0.8%.

In case USD/JPY manages to settle above the 157.00 level, it will head towards the resistance at 158.00 – 158.50.

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