The U.S. Dollar Index is facing strong pressure from traders in response to recent U.S. inflation data. The inflation rate dropped from 3.5% in March to 3.4% in April, meeting analyst expectations. Core inflation also decreased from 3.8% to 3.6%. Traders had been concerned that the inflation rate would surpass predictions. Additionally, today’s focus was on the Retail Sales report, which showed that sales remained flat in April, falling short of the anticipated +0.4%. This disappointing report added to the downward pressure on the U.S. dollar.
Currently, the U.S. Dollar Index is attempting to dip below the 104.40 level. If successful, it is expected to move towards the next support level in the 103.75 – 103.90 range.