EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Index Stays Glued To The 102 Level
- EUR/USD has settled near the 1.0900 level after disappointing GDP data from Germany.
- GBP/USD is slowly moving away from the 1.2400 level.
- USD/JPY continues its attempts to settle back above the 20 EMA.
U.S. dollar is mostly flat at the start of the week, and it looks that traders are waiting for the Fed Interest Rate Decision, which will be released on Wednesday.
Meanwhile, Treasury yields are moving higher. However, this move is not strong as bond traders are also waiting for the Fed decision. Traders should note that trading action may stay choppy until Wednesday.
EUR/USD continues its attempts to settle above the 1.0900 level. Today, EUR/USD traders focused on the economic data from Germany, which reported that GDP has surprisingly declined by 0.2% in the fourth quarter.
Traders also had a chance to take a look at the Euro Area Economic Sentiment report for January. The report showed that Euro Area Economic Sentiment improved from 97.1 in December to 99.9 in January, compared to analyst consensus of 97.
While GDP data from Germany is an important catalyst, traders will stay focused on the upcoming interest rate decisions from the Fed and ECB.
GBP/USD has recently made another attempt to settle above the 1.2400 level but failed to develop sufficient upside momentum and pulled back.
At this point, GBP/USD lacks catalysts needed to settle above 1.2400, and traders will likely stay cautious ahead of central banks’ interest rate decisions. The Bank of England will also announce its interest rate decision this week.
USD/JPY continues its attempts to settle back above the 20 EMA, which is located near the 130.50 level. In case USD/JPY manages to settle above this level, it will have a good chance to gain sustainable upside momentum. However, traders should keep in mind that Fed decision will have a very significant impact on USD/JPY, which is very sensitive to the difference between Fed and BoJ policies.
For a look at all of today’s economic events, check out our economic calendar.