EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Gains Ground After Retail Sales Report

Key Insights

• GBP/USD remains under pressure as traders wait for additional catalysts. 
• USD/CAD is moving lower after Canada’s inflation reports. 
• USD/JPY is trying to settle back above the 139 level. 

U.S. Dollar

U.S. Dollar Index  continues its attempts to settle above the 100 level as traders react to the economic reports. Retail Sales increased by 0.2% month-over-month in June, compared to analyst consensus of +0.5%. Industrial Production declined by 0.5%, while NAHB Housing Market Index grew from 55 in June to 56 in July.

U.S. Dollar Index found material support in the 99.60 – 99.80 range. This support level has been tested several times and proved its strength, so U.S. Dollar Index has a decent chance to gain upside momentum in case it settles above the 100 level.

EUR/USD

EUR/USD was mostly flat as traders waited for additional catalysts. The pullback in Treasury yields did not provide support to EUR/USD.

From the technical point of view, EUR/USD is stuck between the support at 1.1190 and the resistance at 1.1280. EUR/USD must get out of this range to gain momentum.

GBP/USD

GBP/USD is moving lower as traders continue to take profits after the strong rally. At this point, it looks that GBP/USD will need significant catalysts to get to the test of the recent highs near the 1.3150 level.

The nearest support level for GBP/USD is located in the 1.2970 – 1.3000 range. A move below 1.2970 will push GBP/USD towards the support at 1.2820 – 1.2850.

USD/CAD

USD/CAD is losing ground as traders react to inflation reports from Canada. Inflation Rate declined from 3.4% in May to 2.8% in June, while Core Inflation Rate decreased from 3.7% to 3.2%.

USD/CAD failed to settle above the resistance at 1.3240 – 1.3265 and is moving lower. A move below 1.3150 will open the way to the test of the support at 1.3090 – 1.3120.

USD/JPY

USD/JPY gains ground despite falling Treasury yields, and it looks that USD/JPY enjoys significant support in the 138 – 139 range.

In case USD/JPY manages to settle above 139, it will move towards the resistance in the 140.45 – 140.80 range, although it may also face some resistance near the 50 MA at 140.15.

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