Advertisement
Advertisement
EUR/USD, GBP/USD, AUD/USD, USD/JPY – U.S. Dollar Pulls Back
By:
The recent hawkish comments from Fed members did not provide sustainable support to the American currency.
Key Insights
- EUR/USD gained ground as Germany’s Inflation Rate increased from 8.6% to 8.7%.
- GBP/USD moved towards the psychologically important 1.2200 level.
- USD/JPY tested the support at the 20 EMA at 130.65.
U.S. Dollar
U.S. dollar is losing ground against a broad basket of currencies as Treasury yields decline.
Today, traders focused on the Initial Jobless Claims report. The report indicated that 196,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 190,000. While the report missed analyst estimates, it is obvious that the job market remains tight.
EUR/USD
EUR/USD rebounded towards the 1.0800 level after Germany’s inflation report indicated that Inflation Rate increased from 8.6% in December to 8.7% in January, compared to analyst consensus of 8.9%.
The report missed analyst estimates but traders are ready to bet that ECB will be forced to be hawkish in the upcoming months to fight inflation.
GBP/USD
GBP/USD moved towards the 20 EMA near the 1.2200 level as traders focused on the general dynamics of the U.S. dollar. In case GBP/USD manages to settle above the 20 EMA, it will gain additional upside momentum and head towards the next significant resistance level, which is located at 1.2250.
AUD/USD
AUD/USD moved above the 20 EMA and is trying to settle above the 0.7000 level. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum.
Other commodity-related currencies are also moving higher today. NZD/USD tested the 20 EMA near 0.6390. USD/CAD declined towards the 1.3400 level despite the pullback in oil markets.
USD/JPY
USD/JPY is trying to settle below the 20 EMA at 130.65 as traders focus on the pullback in Treasury yields. The BoJ sticks to its ultra-dovish policy, so traders are mostly focused on the potential changes in Fed’s policy. A successful test of the support at the 20 EMA will open the way to the test of the 130 level.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
Advertisement