EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Flat As Traders React To Revisions In CPI Data

Key Insights

• EUR/USD moves higher as the final reading of Germany’s inflation reports meets expectations. 
• USD/CAD is volatile as traders react to Canada’s job market data. 
• USD/JPY settled below the key resistance at 149.50 – 150.00.

U.S. Dollar

U.S. Dollar Index is mostly flat as traders react to the final reading of inflation reports for December. November reading was adjusted from 0.1% to 0.2%, while December CPI was revised from 0.3% to 0.2%.

U.S. Dollar Index remains stuck below the resistance at 104.35 – 104.55. A move above 104.55 will push U.S. Dollar Index towards the next resistance at 105.75 – 106.00.

EUR/USD

EUR/USD is moving higher as traders focus on the final reading of Germany’s inflation reports for January. Inflation Rate declined from 3.7% to 2.9%, in line with analyst estimates.

If EUR/USD climbs above the 50 MA at 1.0792, it will move towards the resistance level at 1.0810 – 1.0830.

GBP/USD

GBP/USD remains stuck below the resistance at 1.2650 – 1.2685 as traders wait for catalysts after the strong rebound from the support at 1.2520.

In case GBP/USD fails to settle above the 1.2650 level, it will pull back towards 1.2600. A move below 1.2600 will push GBP/USD towards the support at 1.2500 – 1.2520.

USD/CAD

USD/CAD is swinging between gains and losses as traders react to job market data from Canada. Unemployment Rate declined from 5.8% in December to 5.7% in January, compared to analyst consensus of 5.9%.

The nearest resistance level for USD/CAD is located in the 1.3480 – 1.3500 range. A move above 1.3500 will push USD/CAD towards the next resistance at 1.3600 – 1.3620.

USD/JPY

USD/JPY settled below 149.50 as bulls worried about potential interventions from the BoJ.

USD/JPY stays below the key resistance at 149.50 – 150.00. A move above 150.00 will push USD/JPY towards the next resistance at 151.50 – 152.00.

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