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Greenback Edging Lower as CPI Rally Unwinds

FOREX
  • Having staged a fierce rally mid-week, the greenback is G10's poorest performing currency ahead of NY hours, as markets unwind and take profit on the volatile post-CPI moves. The USD Index is still comfortably ahead of the week's multi-month lows printed at 89.987, with focus shifting to today's retail sales release.
  • The USD's losses are working in favour of EUR/USD, which has crept well off yesterday's 1.2052 low to narrow the gap with Wednesday's high, and next resistance, at 1.2152.
  • NOK and NZD are among the session's best performers after both currencies traded heavy on commodity weakness across the Wednesday/Thursday sessions. USD/NOK is edging off resistance that held yesterday at the 8.4160 50-dma.
  • Today's retail sales numbers are expected to show a 1.0% gain, a marked slowdown from March's revised 9.7%. The prelim University of Michigan data also crosses, with forward-looking expectations seen rising to a new post-pandemic high.

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