EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Gains Some Ground Ahead Of The Weekend

Key Insights

• EUR/USD continues its attempts to settle below the 1.0850 level. 
• USD/CAD is testing the support level at 1.3300.
• USD/JPY remains stuck near the key 130 level. 

U.S. Dollar

U.S. Dollar Index settled near the 102 level after the release of economic data from the U.S. PCE Price Index met expectations, while Michigan Consumer Sentiment and Pending Home Sales exceeded expectations.

Currently, the U.S. dollar is trying to form a bottom near multi-month lows. In case the U.S. Dollar Index manages to settle back above the 102 level, it will have a good chance to gain upside momentum.

EUR/USD

EUR/USD continues its attempts to settle below the 1.0850 level as traders search for additional catalysts

While the ECB is expected to be more hawkish than the Fed in the near term, some traders believe that central bank policy has been already priced in by markets. Most likely, EUR/USD will need additional catalysts to settle above the 1.0900 level.

GBP/USD

GBP/USD has recently made another attempt to climb above 1.2400 but failed to develop sufficient upside momentum and pulled back.

Trading may stay choppy until the release of the Fed Interest Rate Decision on February 1.

USD/CAD

USD/CAD is testing the support level at 1.3300. In case this test is successful, USD/CAD will gain additional downside momentum and move towards the support level at 1.3350.

Other commodity-related currencies are mostly flat in today’s trading session. AUD/USD settled near the 0.7100 level, while NZD/USD is trading near 0.6485.

USD/JPY

USD/JPY has settled near the 130 level. The reaction to the U.S. economic data was muted, and traders are waiting for additional catalysts. From a big picture point of view, forex markets are not ready for big moves ahead of the Fed decision.

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