Advertisement
Advertisement
EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Pulls Back As PCE Price Index Declines
By:
The weaker-than-expected Michigan Consumer Sentiment report served as an additional bearish catalyst for the American currency.
Key Insights
- EUR/USD made an attempt to settle above the 1.1050 level.
- USD/CAD remained mostly flat as traders reacted to Canada’s GDP report.
- USD/JPY moved towards the 141 level after BoJ left the interest rate unchanged.
U.S. Dollar
U.S. Dollar Index is moving lower as traders react to the PCE Price Index report, which showed that PCE Price Index declined from 3.8% in May to 3% in June. Today, traders also focused on the final reading of the Michigan Consumer Sentiment report, which missed analyst estimates.
U.S. Dollar Index faced strong resistance near the 102.00 level. In case U.S. Dollar Index settles below the 101.50 level, it will head towards the support in the 101.00 – 101.15 range.
EUR/USD
EUR/USD rebounds as traders react to Germany’s inflation reports, which indicated that Inflation Rate declined from 6.4% in June to 6.2% in July. Euro Area Economic Sentiment decreased from 95.3 to 94.5, compared to analyst consensus of 95.
The nearest resistance level for EUR/USD is located in the 1.1070 – 1.1095 range. A move above 1.1095 will open the way to the test of the resistance at 1.1170 – 1.1190.
GBP/USD
GBP/USD has also managed to gain upside momentum in today’s trading session due to the general weakness of the U.S. dollar.
In case GBP/USD climbs back above the 50 MA at 1.2890, it will move towards the resistance in the 1.2970 – 1.3000 range.
USD/CAD
USD/CAD is mostly flat after Canada’s GDP report, which showed that GDP declined by 0.2% month-over-month in June. Analysts expected that Canada’s GDP would grow by 0.1%.
From the technical point of view, USD/CAD continues its attempts to settle above the resistance at 1.3240 – 1.3265. In case USD/CAD manages to settle above this level, it will move towards the next resistance at 1.3360 – 1.3380.
USD/JPY
USD/JPY gained ground after BoJ left the interest rate unchanged at -0.1%. Traders bet that BoJ will remain focused on its ultra-dovish policy in the second half of this year.
If USD/JPY settles back above the resistance at 140.45 – 140.80, it will move towards the next resistance level, which is located in the 141.85 – 142.35 range.
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