EUR/USD: The euro declined against the dollar on Thursday, backed by a strong retail sales report which drove the dollar up. U.S. retail sales unexpectedly increased in August, likely boosted by back-to-school shopping and child tax credit payments from the government, which could temper expectations for a sharp slowdown in economic growth in the third quarter. Retail sales rose up to 0.7% last month. The report data for July was revised down to show retail sales declining 1.8% instead of 1.1% as previously reported. Immediate resistance can be seen at 1.1774. A breakout up can trigger growth towards 1.1805.
USD/JPY: The dollar strengthened against the Japanese yen on Thursday also after U.S. retail sales data showed an increase in August, easing some concerns about a sharp slowdown in economic growth. Retail sales rose last month, boosted in part by shopping and child tax credit payments. A separate report showed initial unemployment claims in the U.S. increased by 20.000, taking into account fluctuations for the season. There were 332.000 seasonally adjusted claims for the week ending September 11. Economists had forecast 330.000 applications for the latest week. The currency pair can likely rise a little higher, in the range of 109.20 – 110.55
GBP/USD: The British pound sterling fell versus the dollar on Thursday after the report showed U.S. retail sales unexpectedly increased in August, while Asian stock losses frightening investors even more also put a lot of pressure on the British pound. An increase in purchases in online and furniture store purchases in the United States offset a continued decrease in buying activity at auto dealerships, which could temper expectations for a sharp slowdown in economic growth in the third quarter. The British pound slipped to 0.5% to a one-week low of $1.3796 against the dollar at 1:00 a.m. of Eastern European Summer Time (EEST), off the 5-week high of $1.3913 just touched earlier this week. The nearest resistance level can be seen at 1.3812. From this level, it will be possible to look for shorts again to the previous minimums at 1.3763.