EUR/USD, GBP/USD, AUD/USD, USD/JPY – U.S. Dollar Pulls Back From Session Highs
- U.S. dollar received some support after the release of PMI data but failed to develop sufficient upside momentum.
- GBP/USD made an attempt to settle below the 1.2300 level.
- USD/JPY pulled back towards the 130 level.
U.S. Dollar (DXY)
U.S. dollar made an attempt to rebound after the release of PMI reports, which indicated that rising prices continued to put pressure on businesses. However, the American currency failed to develop sufficient upside momentum and pulled back.
Meanwhile, Treasury yields moved lower, which served as a bearish catalyst for the U.S. dollar. In case the U.S. Dollar Index settles below the 102 level, it will move towards the recent lows near 101.50.
EUR/USD is currently trying to settle above the resistance level at 1.0870. Today, traders focused on PMI reports.
Euro Area Manufacturing PMI improved from 47.8 in December to 48.8 in January, while Euro Area Services PMI increased from 49.8 to 50.7. Both reports exceeded analyst forecasts but did not provide significant support to the European currency.
GBP/USD has recently made an attempt to settle below the 1.2300 level as traders reacted to the disappointing Services PMI data from the UK. UK Services PMI declined from 49.9 in December to 48 in January, compared to analyst consensus of 49.7.
Yesterday, GBP/USD faced significant resistance at multi-month highs near the 1.2450 level, and it will likely need strong catalysts to move above this level.
AUD/USD continued to move higher and tested the 0.7050 level. RSI remains in the moderate territory, and there is enough room to develop additional upside momentum in case the right catalysts emerge.
USD/JPY faced resistance near the 20 EMA at 130.85 and pulled back towards the 130 level. Japan’s Manufacturing PMI missed expectations and showed that manufacturing activity remained under pressure, while Services PMI increased from 51.1 in December to 52.4 in January. Most likely, traders will stay focused on the expectations for the BoJ policy.
For a look at all of today’s economic events, check out our economic calendar.