The US dollar lost ground against major forex counterparts despite bullish results in the morning’s key Advance Retail Sales report. Such losses were ascribed to renewed speculative currency interest, with many forex traders pouncing on dollar rallies to sell it against the euro and the Canadian dollar. Though the greenback firmed through later price action, it remains relatively clear that risks remain to the downside through short term trade.

The Euro initially slipped against the dollar on the strong Retail Sales figures, but the single currency posted a strong reversal and remained higher against the greenback through later trade. Price action in the British Pound was similar to that of the euro, with the Sterling over 100 points off of intraday lows at $2.0350. The Canadian dollar was unsurprisingly stronger against its US namesake, setting fresh 31-year lows in the moments following the retail sales report.

Positive US economic data seemingly fueled the domestic currency’s sell-off, as strong Advance Retail Sales and Producer Price Index figures were unable to stem dollar declines. The key spending numbers reflected the strongest gain in six months—instantly improving sentiment on the state of the domestic consumer. A simultaneous Producer Price Index report showed that price pressures remain elevated for US industries, as headline PPI showed its strongest year-over-year change since June of 2006.