Advertisement
Advertisement
EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Gains Ground Amid Rising Demand For Safe-Haven Assets
By:
The global risk appetite declined after Moody's downgraded 10 U.S. banks.
Key Insights
- EUR/USD pulled back towards the 1.0950 level.
- USD/CAD moved above 1.3450 as traders focused on the sell-off in commodity markets.
- USD/JPY managed to settle above 143.
U.S. Dollar
U.S. Dollar Index gained ground as demand for safe-haven assets increased after Moody’s downgraded U.S. banks.
In case U.S. Dollar Index settles above the recent highs near 102.85, it will move towards the resistance, which is located in the 103.40 – 103.65 range.
EUR/USD
EUR/USD pulled back as traders reacted to the final reading of Germany’s inflation reports, which indicated that Inflation Rate declined from 6.4% in June to 6.2% in July.
Currently, EUR/USD is trying to settle below the support at 1.0950 – 1.0975. In case this attempt is successful, EUR/USD will move towards the next support level, which is located in the 1.0835 – 1.0850 range.
GBP/USD
GBP/USD moved lower after BRC Retail Sales Monitor missed analyst expectations. The general strength of the U.S. dollar put additional pressure on GBP/USD.
If GBP/USD settles below the support at 1.2725 – 1.2750, it will head towards the next support area in the 1.2590 – 1.2620 range.
USD/CAD
USD/CAD tested new highs as commodity-related currencies found themselves under strong pressure amid a sell-off in commodity markets.
USD/CAD faced resistance near the 1.3500 level and pulled back towards the support at 1.3430 – 1.3450. A move below 1.3430 will open the way to the test of the support at 1.3360 – 1.3380.
USD/JPY
USD/JPY gains ground despite the pullback in Treasury yields as rising demand for safe-haven assets provides significant support to the American currency. The weaker-than-expected IBD/TIPP Economic Optimism Index report did not put pressure on the U.S. dollar.
From the technical point of view, USD/JPY is moving towards the resistance in the 144.65 – 145.00 area. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
Advertisement