US Dollar Higher, But Gains Could Be Pared

US dollar is mostly higher today, gaining as other currencies show weakness. However, thanks to the latest retail sales data, some of the greenback’s gains could be pared.

Greenback is enjoying a boost today against most of its major counterparts. News that the Bundesbank is ready to support further stimulus in the eurozone is sending the 17-nation currency lower. Dollar is also getting help against high beta currencies as safe haven demand is tested on increasing tensions in Ukraine.
US dollar also saw some gains against the yen, pushing USD/JPY above 102 yesterday and overnight. However, greenback is paring some of its gains against the Japanese yen after the release of retail sales data. The latest retail sales data for the United States shows a sharp slowdown for April, and that is weighing a bit against the dollar. A slower economic recovery likely means lower interest rates from the Federal Reserve for an extended period.
For now, though, there is enough going on to help support the dollar index in gains.
At 13:22 GMT DXY is up to 79.9950 from the open at 79.9050. EUR/USD is down to 1.3726 from the open at 1.3757. GBP/USD is also lower, down to 1.6854 from the open at 1.6868. USD/JPY has pulled back, dropping from the open at 102.1260 to 102.1150.

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