U.S. Dollar Retreats As Michigan Consumer Sentiment Misses Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Pulls Back Ahead Of The Weekend

U.S. Dollar Index is losing ground as traders react to the weaker-than-expected Michigan Consumer Sentiment report. The report indicated that Michigan Consumer Sentiment decreased from 61.7 in July to 58.6 in August, compared to analyst consensus of 62.

A move below 97.60 will push U.S. Dollar Index towards the support level, which is located in the 97.10 – 97.30 range.

EUR/USD Moves Higher As Traders Bet On Dovish Fed

EUR/USD gains ground as traders focus on the Retail Sales report from the U.S. The report indicated that Retail Sales increased by +0.5% month-over-month in July, in line with analyst consensus.

A successful test of the resistance at 1.1685 – 1.1700 will push EUR/USD towards the next resistance level, which is located in the 1.1800 – 1.1815 range.

GBP/USD Tests Resistance At 1.3570 – 1.3585

GBP/USD is trying to settle above the resistance at 1.3570 – 1.3585 as traders focus on general weakness of the U.S. dollar.

If GBP/USD manages to settle above the 1.3585 level, it will head towards the next resistance, which is located in the 1.3665 – 1.3680 range.

USD/CAD Remains Stuck Near 1.3800

USD/CAD is mostly flat despite the pullback in commodity markets. Other commodity-related currencies gain some ground in today’s trading session as traders bet on dovish Fed.

If USD/CAD stays above the 1.3800 level, it will move towards the next resistance at 1.3845 – 1.3860.

USD/JPY Moves Lower As Japan’s GDP Growth Rate Beats Estimates

USD/JPY moved lower as traders reacted to GDP Growth Rate report from Japan. The report indicated that GDP Growth Rate was +0.3% in the second quarter, compared to analyst consensus of +0.1%.

RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

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