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

U.S. Dollar Is Under Pressure

U.S. Dollar Index is losing ground as traders focus on the weaker-than-expected Retail Sales report. The report indicated that Retail Sales increased by +0.2% month-over-month in September, compared to analyst forecast of +0.4%.

Currently, U.S. Dollar Index is trying to settle below the 50 MA at 99.83. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance, which is located in the 98.85 – 99.00 range.

EUR/USD Tests Resistance At 1.1585 – 1.1600

EUR/USD gains ground as traders focus on U.S. economic reports. Core PPI increased by +0.1% month-over-month in September, compared to analyst forecast of +0.2%.

The nearest resistance level for EUR/USD is located in the 1.1585 – 1.1600 range. In case EUR/USD manages to settle above the 1.1600 level, it will head towards the next resistance at 1.1715 – 1.1730.

GBP/USD Tests New Highs As Rebound Continues

GBP/USD moved above the resistance level at 1.3145 – 1.3160 as traders focused on general weakness of the American currency.

If GBP/USD stays above the 1.3160 level, it will head towards the next resistance at 1.3250 – 1.3265.

USD/CAD Remains Stuck Near The 1.4120 Level

USD/CAD is mostly flat despite the pullback in commodity markets. Other commodity-related currencies are losing ground in today’s trading session.

If USD/CAD settles below the support at 1.4080 – 1.4095, it will head towards the 50 MA at 1.4056.

USD/JPY Pulls Back As Treasury Yields Fall

USD/JPY moved lower as traders reacted to the pullback in Treasury yields. The yield of 2-year Treasuries declined below the psychologically important 3.50% level, while the yield of 10-year Treasuries tested the 4.00% level.

A move below the 50 MA at 155.94 will push USD/JPY towards the support at 154.50 – 155.00. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in the near term.

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