According to data released by the US Census Bureau, Retail Sales for February fell 2.7% monthly, in a report which was far worse than the 0.2% growth that analysts had expected. This was also less than January’s 8.3% increase. Furthermore, core retail sales came out 3.0% lower, disappointing the markets (expectation of -0.5%).
However, the negative impact of the report was brightened by the aspect of the report that indicated a 6.0% rise in the retail sales for December 2020 through February 2021 when compared with a year earlier.
Thus, there is a mildly bearish sentiment on the US Dollar for the day, with the DXY now trading 0.05% in the red as of the time of writing.
The markets now look towards tomorrow’s FOMC meeting for further direction on the USD.
Technical Outlook for USD Index
By today’s intraday drop, the price has stalled at 91.906. A break above this area allows for a potential retest of 92.50. with bulls potentially forcing a move towards 92.803 and 93.173.
On the other hand, a potential decline from rejection at the 91.906 resistance forms declining tops, which could precipitate a drop towards 91.50, with a possibility of attaining 91.261 and 90.965 respectively.
USD Index; Daily Chart
