EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Higher As Inflation Rate Exceeds Expectations

U.S. Dollar

U.S. Dollar Index is moving higher as traders react to inflation reports. Inflation Rate increased from 3.1% in January to 3.2% in February, while Core Inflation Rate declined from 3.9% to 3.8%. Both reports exceeded analyst expectations and showed that Fed may be forced to be more hawkish.

In case U.S. Dollar Index settles above the resistance at 102.80 – 103.00, it will head towards the next resistance level, which is located in the 103.50 – 103.75 range.

EUR/USD

EUR/USD is losing some ground as traders focus on U.S. inflation data. In the EU, the final reading of Germany’s inflation reports met analyst estimates and had little impact on market dynamics.

Currently, EUR/USD is trying to settle below the support at 1.0900 – 1.0920. In case EUR/USD declines below the 1.0900 level, it will head towards the next support at 1.0810 – 1.0830.

GBP/USD

GBP/USD remained under pressure after the release of UK Unemployment Rate report, which indicated that Unemployment Rate increased from 3.8% in December to 3.9% in January.

If GBP/USD settles below the 50 MA at 1.2736, it will head towards the nearest support level at 1.2650 – 1.2685.

USD/CAD

USD/CAD continues its attempts to settle above the resistance at 1.3480 – 1.3500 as traders focus on the general strength of the American currency.

A successful test of the resistance at 1.3500 will open the way to the test of the next resistance level at 1.3600 – 1.3620.

USD/JPY

USD/JPY is moving higher as Treasury yields rise after the release of U.S. inflation reports. Traders use the recent pullback as an opportunity to establish long positions in USD/JPY.

In case USD/JPY manages to settle above the resistance at 147.00 – 147.50, it will head towards the next resistance level at 149.50 – 150.00. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

For a look at all of today’s economic events, check out our economic calendar.