Shifting Sentiment May Aid Dollar

After breaching 1.5000 and hitting a high of 1.5040, the EURUSD retracted sharply overnight to 1.4990 - see chart.

Late yesterday afternoon, US equities suddenly collapsed by over 100 points after concerning remarks about Wells Fargo emerged. Signs of a shift in market sentiment may be developing which could dampen further EURO growth if fully verified.

U.S. INITIAL JOBLESS CLAIMS have just been posted showing a rise to 531K versus the expected 515K which should also restrict any new EURO advancement.

Elsewhere, U.K RETAIL SALES registered no change at 0.0% in
September against the expected an 0.5% rise. Consequently, the GBPUSD recent rally stalled by retreating to 1.6550 presently.

Another sign that market sentiment may be turning is that despite the dollar achieving new lows against most of the majors on a daily basis, the speed of its drop is beginning to decrease.

However, serious evidence of a reversal needs to be detected first in order to confirm this such as lower highs on the Daily EURUSD.