EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Jumps Back And Forth After Inflation Data

Key Insights

• U.S. dollar is volatile after the release of U.S. inflation reports. 
• Treasury yields have started to move higher, which may provide additional support to the American currency. 
• Traders’ reaction to U.S. inflation data will remain the only significant catalyst for today’s trading session. 

U.S. Dollar

U.S. Dollar Index has settled near the 103 level after the release of U.S. inflation data. The reports indicated that Inflation Rate declined from 6.5% in December to 6.4% in January, compared to analyst consensus of 6.2%. Core Inflation Rate decreased from 5.7% to 5.6%, while analysts expected that it would decline to 5.5%.

Interestingly, higher-than-expected inflation did not provide additional support to the American currency. At the same time, it should be noted that Treasury yields have started to move higher, which is bullish for the U.S. dollar.

EUR/USD

EUR/USD is currently trying to settle above the 1.0750 level.  Today, traders had a chance to take a look at the second estimate of the Euro Area GDP Growth Rate report.

The report showed that GDP increased by 0.1% in the fourth quarter, in line with the analyst consensus. While the European economy continued to grow at the end of 2022, recession risks remain a significant issue.

GBP/USD

GBP/USD is currently trying to settle above the 1.2200 level. The better-than-expected Claimant Count Change report for January provided additional support to the British pound.

USD/CAD

USD/CAD is volatile as traders react to U.S. inflation data. RSI remains in the moderate territory, so there is plenty of room to gain additional momentum.

AUD/USD made an attempt to settle above the 0.7000 level but lost momentum and pulled back towards the 20 EMA at 0.6965. NZD/USD is currently trying to settle below the 50 EMA at 0.6335.

USD/JPY

USD/JPY continues its attempts to settle above the 50 EMA at 132.65. In case USD/JPY manages to settle above this level, it will head towards the next significant resistance level at 134.50.

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