US Dollar Retreats as Consumer Confidence Misses Estimates

The US Dollar Index (DXY) retreated from session highs on Thursday as traders reacted to weaker-than-expected consumer confidence data. The Conference Board's Consumer Confidence report showed a decline from 90.2 in July (revised from 90.8) to 89.4 in August, missing analyst forecasts of 90.2.

The New Home Sales report for July also disappointed, with sales decreasing by -10.5% month-over-month, compared to consensus estimates of -1.3%. The DXY's nearest support level is located between 98.60 and 98.75. If the index falls below this range, it may head towards the next support at 97.85-98.00.

In contrast, the EUR/USD pair gained ground as traders responded to a better-than-expected Ifo Business Climate report from Germany. The Business Climate improved from 86.7 (revised from 86.6) in July to 88.8 in August, exceeding analyst forecasts of 87.2.

The GBP/USD remained stuck near strong resistance levels, with no major economic reports scheduled for release in the UK on Thursday. The USD/CAD pulled back as traders took profits after a recent rebound, while the USD/JPY gained ground despite falling Treasury yields.