EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Swings Between Gains And Losses After Inflation Data

Vladimir Zernov
Published: Sep 13, 2023, 16:44 GMT+00:00

U.S. Inflation Rate exceeded analyst expectations but Core Inflation Rate declined to 4.3%.


In this article:

Key Insights

  • U.S. Dollar Index hovers near a resistance range of 104.45 – 104.70 as traders evaluate inflation data.
  • EUR/USD finds itself on a seesaw following disheartening Euro Area industrial output, which contracted by 1.1% MoM.
  • GBP/USD regroups near 1.2500 despite a souring UK GDP report showing a 0.5% month-over-month decline for July.

U.S. Dollar

DXY 130923 4h Chart

U.S. Dollar Index remains stuck near the resistance at 104.45 – 104.70 as traders react to the inflation reports. Inflation Rate increased from 3.2% in July to 3.7% in August, while Core Inflation Rate declined from 4.7% to 4.3%.

In case U.S. Dollar Index settles below the 104.45 level, it will head towards the next support at 103.40 – 103.65.


EUR/USD 130923 4h Chart

EUR/USD is swinging between gains and losses after the disappointing Euro Area Industrial Production report, which showed that Euro Area Industrial Production declined by 1.1% month-over-month in July.

If EUR/USD settles above the 1.0750 level, it may gain additional upside momentum and move towards the resistance at 1.0835 – 1.0850.


GBP/USD 130923 4h Chart

GBP/USD made an attempt to settle below the 1.2470 level but lost momentum and moved back towards 1.2500. UK GDP declined by 0.5% month-over-month in July, compared to analyst consensus of -0.2%. However, it looks that some traders are ready to bet on the rebound of GBP/USD despite disappointing report.

In case GBP/USD manages to settle back above 1.2500, it will head towards the nearest resistance level, which is located in the 1.2590 – 1.2620 range.


USD/CAD 130923 4h Chart

USD/CAD tested new lows as oil markets continued to move higher. WTI oil has recently made an attempt to settle above $89.50, while Brent oil traded near the $92.00 level.

A successful test of the support at 1.3500 – 1.3520 will open the way to the test of the next support level at 1.3370 – 1.3400.


USD/JPY 130923 4h Chart

USD/JPY is slowly moving higher despite worries about potential interventions from the BoJ.

The nearest significant resistance level is located in the 148.00 – 149.00 range. USD/JPY will need major catalysts to settle above 149.00.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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