The May Retail Sales data revealed a small 0.1% increase, lower than the expected 0.2% rise, thereby leaving the stability of the U.S. Dollar unchanged.
Interestingly, Retail Sales Ex Autos experienced a surprise 0.1% decrease, resulting in a somewhat mixed economic picture.
Experts are expressing concerns about a potential fall below the 50 MA mark of 105.12, signifying a downward trajectory towards the 104.40 – 104.60 range.
If this line breaks, it might prompt a sell-off reducing prices further. Investors are advised to closely watch market trends, especially if prices reach or breach the 50 MA level.
Contrarily, the EUR/USD pair remained steady despite the Euro Area ZEW Economic Sentiment Index’s June report surpassing expectations, moving from 47 in May to 51.3 in June and a 2.4% to 2.6% inflation rate assertion supporting the EUR.
The GBP/USD faced challenges, unable to exceed the 1.2700 mark with fears of a decline below the 1.2670 support level, potentially moving towards the 1.2550 – 1.2575 range.
The USD/CAD experienced a slight dip as the market shifted its focus to the rising oil markets.
Minor May retail sales increase, economy uncertain
This shift could challenge the major support level at 1.3600 – 1.3620 if it drops below 1.3700.
The USD/JPY pair’s future is uncertain, resting between 158.00 – 158.50 resistance levels, and apprehension over potential Bank of Japan intervention if it nears 160.00 persists.
Continuing to observe the Eurozone and UK political landscape, the EUR/GBP pair operates within a narrow margin. Discrepancies in exchange rate could lead to significant market impacts, especially if the pair breaches the 0.9200 – 0.9300 resistance levels.
The UK’s May Inflation rate year-on-year reportedly decreased from 2.3% in April to 2.0% in May, indicating a spending slowdown. Similarly, manufacturing activities in New York State saw a decline.
Moving forward, the week will center attention on private sector PMIs, the Bank of England, and the Reserve Bank of Australia.
