Forex Today: US Dollar holds steady ahead of US Retail Sales

The US Dollar (USD) has maintained a steady position ahead of the release of US Retail Sales data on Friday. The US Dollar Index (DXY) dipped below the 100.00 level following weaker-than-expected Producer Price Index (PPI) data and a surprise rise in weekly Jobless Claims, reducing expectations for additional Federal Reserve (Fed) rate hikes. However, Cleveland Fed President Beth Hammack reiterated her stance for rate increases, which helped stabilize the currency.

During the US session, the USD was the strongest against the New Zealand Dollar. The Euro (EUR) held onto gains in the low-1.1500 range, awaiting the Eurozone's preliminary second-quarter GDP report. Meanwhile, the British Pound (GBP) struggled below the 1.3500 mark and failed to recover after mixed UK economic data released earlier in the week. The Japanese Yen (JPY) remained stable around 159.50, trading within a narrow range.

Gold's momentum waned, slipping towards $4,350 per troy ounce as it retreated from recent highs. West Texas Intermediate (WTI) Oil continued its downward trajectory, nearing $81.00 per barrel. On Friday, the Eurozone's flash second-quarter GDP and preliminary US Employment figures will be released, alongside the US Retail Sales report, which includes the Control Group.

A disappointing release could exacerbate the recent series of undershooting US economic data. Later, the preliminary Michigan Consumer Sentiment Index may decline from the previous month, with one- and five-year inflation expectations closely watched following the recent softer price figures.