The US dollar is trading lower as retail sales grew by a lukewarm 0.1% during November, well below analysts’ expectations of 0.3%. Investors are now looking toward this afternoon’s Federal Reserve meeting. In addition to a highly-anticipated interest rate increase announcement, investors will be watching the central bank’s rate hike plans for 2017. If Fed projections surprise analysts with more than two planned interest rate increases next year, the dollar could strengthen and reach fresh highs. Tomorrow morning will bring weekly jobless claims, consumer inflation, and two manufacturing activity surveys for November.

Across the Atlantic, the pound is rising against a weaker US dollar as the latest labor market data shows stronger-than-expected average earnings (wage) growth and fewer than expected claimants (jobless claims) for November. Tomorrow morning we’ll see November’s retail sales results followed by the Bank of England’s December meeting, where investors aren’t expecting any surprises.

The euro is also gaining against a weaker US dollar despite the Eurozone’s weaker-than-expected industrial production in October. Look for December’s preliminary business activity data out of Italy, Germany, and the broader Eurozone scheduled for release tomorrow morning.

To our north, the Canadian dollar is climbing compared to its falling US counterpart despite oil prices dipping toward $53 per barrel. Investors are now waiting for tomorrow’s manufacturing shipment numbers from October and a speech from Bank of Canada Governor Poloz.

In the East, the Japanese yen is recovering against a weaker dollar, taking a break from its multi-month downtrend. The Australian dollar is rising ahead of tonight’s employment numbers for November.

EURUSD: The euro is up against a weaker dollar despite the Eurozone’s weak industrial production in October.

GBPUSD: The pound is also gaining thanks to stronger-than-expected wage growth and fewer jobless claims.

AUDUSD: The Aussie dollar is up ahead of tonight’s employment data.

USDCAD: The Canadian dollar is climbing against a weaker US dollar despite retreating oil prices.