Dollar Dominance: DXY Breaches 99.00 as Euro Crumbles Below 1.1650

The US Dollar Index (DXY) has firmly reasserted its dominance, breaking above the psychological 99.00 handle to trade near 99.15 during early European hours Thursday. The greenback's latest ascent is fueled by robust US Retail Sales figures, which have recalibrated market expectations regarding the Federal Reserve's monetary policy path.

Major Pairs Under Pressure

The dollar's resurgence has unleashed a wave of selling pressure on major counterparts, most notably the Single Currency. EUR/USD has extended losses for a third consecutive session, sliding below the critical 1.1650 support level to trade around 1.1640. The technical breakdown suggests bears are now in control, eyeing further downside as the divergence between the US economy and Eurozone growth prospects widens.

Sterling Traders Eye UK GDP

Attention now shifts to the British Pound, which faces a high-stakes volatility event later this session. The Office for National Statistics (ONS) is scheduled to release the UK Gross Domestic Product (GDP) and Industrial Production data for November at 07:00 GMT.

• Event Watch: A disappointment in UK growth figures could compound the pressure on GBP/USD, potentially accelerating the pair's slide against a resurgent dollar.
• US Data Docket: Later today, markets will also digest the weekly US Initial Jobless Claims, which could offer further fuel for the DXY's bullish momentum if labor market tightness is confirmed.