U.S. Dollar Index is losing ground despite the better-than-expected Retail Sales report. The report indicated that Retail Sales increased by +0.6% month-over-month in August, compared to analyst forecast of +0.2%. Traders ignored the encouraging report and focused on the Fed decision, which would be released tomorrow.
From the technical point of view, U.S. Dollar Index settled below the support at 97.10 – 97.30 and is moving towards the next support at 96.40 – 96.50.
USD/CAD is losing ground as traders focus on inflation data from Canada. Inflation Rate increased from 1.7% in July to 1.9% in August, compared to analyst forecast of 2%.
A move below the support at 1.3735 – 1.3750 will push USD/CAD towards the next support level at 1.3635 – 1.3650.
