U.S. Dollar Gains Ground Despite Weak Retail Sales Data: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Moving Higher As Traders Focus On Middle East Tensions

U.S. Dollar Index gains ground despite the disappointing Retail Sales report. The report indicated that Retail Sales declined by -0.9% month-over-month in May, compared to analyst forecast of -0.7%.

In case U.S. Dollar Index manages to settle above the 50 MA at 98.59, it will move towards the next resistance, which is located in the 99.00 – 99.20 range.

EUR/USD Is Heading Towards 1.1500

EUR/USD pulls back as traders react to the Euro Area ZEW Economic Sentiment Index report. The report showed that Economic Sentiment increased from 11.6 in May to 35.3 in April, compared to analyst consensus of 23.5.

A move below the 50 MA at 1.1483 will push EUR/USD towards the nearest support level at 1.1410 – 1.1425.

GBP/USD Is Under Pressure

GBP/USD is losing ground as demand for safe-haven dollar is rising amid tensions in the Middle East.

The nearest support level for GBP/USD is located in the 1.3420 – 1.3440 range. In case GBP/USD declines below the 1.3420 level, it will head towards the next support at 1.3260 – 1.3280.

USD/CAD Attempts To Climb Above 1.3600

USD/CAD is trying to settle back above the 1.3600 level despite the strong rally in the oil markets. Other commodity-related currencies are also losing ground in today’s trading session.

If USD/CAD settles above 1.3600, it will head towards the next resistance level at 1.3650 – 1.3665.

USD/JPY Gains Ground After BoJ Decision

USD/JPY moved higher as traders focused on BoJ Interest Rate Decision. The BoJ left the interest rate unchanged at 0.5%, in line with analyst forecast.

Currently, USD/JPY is trying to settle above the 145.00 level. In case this attempt is successful, USD/JPY will head towards the resistance at 147.50 – 148.00.

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