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