FXstreet.com (Barcelona) - Dollar rally triggered by a larger than expected advance in retail sales has extended after U.S Reuters/University of Michigan Consumer Sentiment Index showed an increase to 73.4 in December from 64.7 in November.

The assessment of the current economic situation has improved to 79.1 in December from 68.8 in November, while the expectations index increased to 69.7 in December from 66.5 in November.

EUR/USD decline from 1.4770 extended below 1.4650 after consumer sentiment data to test November 2 low at 1.4625 at the moment of writing.

USD/JPY recovery from 87.35 low on Wednesday has extended to levels above 89.50, with the Dollar at 89.60, although at heavily overbought levels on hourly and intra-day charts.