Dollar Retreats Amid Yen Intervention Frenzy

The U.S. dollar pulled back from session highs as traders focused on yen intervention and inflation data from the EU.

The U.S. Dollar Index is swinging between gains and losses in reaction to the Michigan Consumer Sentiment report, which showed a rise in consumer sentiment from 49.5 in June to 55.2 in July, exceeding analyst forecasts of 54.0.

Eurozone inflation data also had an impact on EUR/USD, as the Euro Area Inflation Rate increased from 2.8% in June to 2.9% in July, matching analyst estimates. The currency pair rebounded from session lows and attempted to settle above the resistance level at 1.1510-1.1525.

The USD/JPY remained volatile after the Bank of Japan's intervention, with traders reacting to a massive $53 billion support for the national currency. The pair is currently testing the support at 159.50-160.00 and may head towards the next support level at 157.50-158.00 if it settles below this level.