UK Retail Sales

The U.S. dollar strengthened as traders tracked higher Treasury yields, with the 10-year Treasury yield testing the psychologically important 5.00% level. EUR/USD slipped, GBP/USD rebounded on stronger UK retail sales, USD/CAD challenged 1.4000, and USD/JPY rose after the Bank of Japan delivered a rate increase without clear forward guidance.

GBP/USD traded around 1.3515 after a solid US nonfarm payrolls report kept Federal Reserve rate-hike expectations in focus. Traders are watching 1.3450 as near-term downside risk and 1.3650 as a bullish target, with US inflation and UK data due this week.

GBP/USD advanced to its highest level since May, extending a recovery that began after the pair bottomed in June. Traders are weighing a bullish chart structure against a busy run of UK and US macroeconomic data that could fuel near-term volatility.

GBP/USD has retreated sharply from this month’s high as traders position for key US macro data and upcoming central bank decisions. Technical signals remain tilted to the downside, with chart watchers focusing on 1.3150 as a potential support target if selling pressure persists.

The U.S. dollar lost ground as a sharp pullback in oil reduced demand for safe-haven positioning. EUR/USD and GBP/USD advanced on stronger economic data, while USD/JPY pressed against a major resistance zone last seen in the mid-1980s.