A slower start to the day for major currencies ahead of European trading

The greenback nudged slightly higher after the more upbeat US retail sales report here. But it gave back those gains late in the day, as stocks continue to rip higher in Wall Street. It’s been a stellar month for equities already, with the S&P 500 up over 3.8% and the Dow up some 4.7% in July. The hot summer streak looks set to continue with investors set to spin the narrative however they see fit.

FX is little changed overall today, with major currencies not really up to much. EUR/USD and USD/JPY are flattish with the former near 1.0900 and the latter seen at 158.35 on the day.

The kiwi is the only decent mover, with NZD/USD up 0.4% to 0.6070 following inflation numbers earlier from New Zealand. The data continues to point to further disinflation, so it is surprising to see the reaction in the kiwi. The technicals might be saying something though, with NZD/USD finding a bounce off its 50.0 Fib retracement level:

But the pair is now facing key resistance from its 200-day moving average (blue line) at 0.6075. So, that’s a key level to watch in keeping the downside momentum for now.

This article was written by Justin Low at www.forexlive.com.