U.S. Dollar Is Mostly Flat As Retail Sales Beat Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Mostly Flat As Traders React To Retail Sales Data

U.S. Dollar Index is swinging between gains and losses as traders react to the Retail Sales report for November. The report indicated that Retail Sales increased by 0.7% month-over-month, compared to analyst consensus of +0.5%.

The nearest resistance level for U.S. Dollar Index is located in the 107.10 – 107.30 range. A successful test of this level will open the way to the test of the next resistance at 108.30 – 108.50.

EUR/USD Pulled Back As Ifo Business Climate Report Missed Expectations

EUR/USD pulled back as traders focused on the disappointing Ifo Business Climate report from Germany. The report showed that Business Climate declined from 85.6 in November to 84.7 in December, compared to analyst forecast of 85.6.

In case EUR/USD stays below the 1.0500 level, it will move towards the nearest support level, which is located in the 1.0435 – 1.0450 range.

GBP/USD Tests Resistance At 1.2700 – 1.2715

GBP/USD is moving higher as traders focus on UK Unemployment Rate report, which showed that Unemployment Rate remained unchanged at 4.3% in October.

A move above the resistance at 1.2700 – 1.2715 will push GBP/USD towards the next resistance level at 1.2850 – 1.2870.

USD/CAD Rallied Above 1.4300

USD/CAD tests new highs as traders focus on the pullback in commodity markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

From the technical point of view, USD/CAD needs to settle above the resistance at 1.4330 – 1.4350 to gain additional upside momentum. RSI is in the overbought territory, so the risks of a pullback are increasing.

USD/JPY Pulls Back As Treasury Yields Decline

USD/JPY moved lower as traders focused on the pullback in Treasury yields. It looks that traders take some profits off the table ahead of Fed decision, which will be released tomorrow.

In case USD/JPY declines below the support at 153.00 – 153.50, it will move towards the 50 MA at 152.08.

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