U.S. Dollar Retreats As Consumer Sentiment Dips To Multi-Month Lows

Key Insights

• Weak Consumer Sentiment report put additional pressure on the U.S. dollar. 
• AUD/USD moved towards the 0.6700 level as commodity markets continued to rebound. 
• GBP/USD made an attempt to settle above 1.1800.

U.S. Dollar Remains Under Strong Pressure

The American currency has found itself under significant pressure after yesterday’s inflation reports and comments from Fed members.

Currently, the U.S. Dollar Index continues its attempts to settle below the 107 level as traders react to the Michigan Consumer Sentiment report, which indicated that Consumer Sentiment declined from 59.9 in October to 54.7 in November.

The weak Consumer Sentiment report may put additional pressure on the U.S. dollar. Slower consumer activity leads to lower inflation, so the Fed could be less hawkish.

EUR/USD Tests Resistance At 1.0325

EUR/USD has recently made an attempt to settle above the 1.0325 level as the strong rebound continued. Traders ignore recession forecasts and focus on the general weakness of the American currency.

EUR/USD managed to get above 1.0300 and is trying to settle above the resistance level at 1.0325. In case this attempt is successful, EUR/USD will move towards the resistance at 1.0360. A successful test of this level will push EUR/USD towards the resistance at 1.0400.

On the support side, a move below 1.0300 will open the way to the test of the support at 1.0275. If EUR/USD declines below this level, it will head towards the next support at 1.0250.

GBP/USD Tries To Get Above The 1.1800 Level

GBP/USD made an attempt to setle above the 1.1800 level but lost momentum and pulled back below 1.1750.

Today, traders focused on the economic data from the UK. The third-quarter GDP Growth Rate report indicated that GDP declined by 0.2% on a quarter-over-quarter basis, compared to analyst consensus of -0.5%.

Manufacturing Production declined by 5.8% year-over-year in September, while Industrial Production fell by 3.1%. Both reports exceeded analyst expectations. In the near term, traders will likely stay focused on the general dynamics of the U.S. dollar, which remains under pressure after the release of U.S inflation data.

AUD/USD Continues To Rebound As Commodity Markets Stay Strong

AUD/USD moved to new highs near the 0.6700 level as commodity markets continued to rebound. NZD/USD rallied towards the 0.6100 level.

Meanwhile, USD/CAD settled below 1.3300 and continues to move lower. WTI oil rebounded towards the $90 level as China relaxed its COVID policy, so the Canadian dollar may get more support in today’s trading session.

USD/JPY Fell Below The Key 140 Level

USD/JPY managed to settle below the 140 level and made an attempt to settle below 138.75.

The Japanese yen continues to gain ground against the U.S. dollar as unfortunate short-sellers are forced to buy the yen to get out of their positions.

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