EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Rebounds After Yesterday’s Pullback
Key Insights
- U.S. Dollar Index found support near the 102.50 level.
- EUR/USD faced resistance at 1.0870 and pulled back below the 1.0850 level.
- USD/JPY rallied towards the 132.50 level.
U.S. Dollar
U.S. Dollar Index received support near the 102.50 level and is trying to gain upside momentum. Treasury yields pulled back from session highs, but this move did not put pressure on the American currency.
Today, traders focused on the Pending Home Sales report, which indicated that Pending Home Sales increased by 0.8% month-over-month in February, compared to analyst consensus of -2.3%.
The better-than-expected report showed that the housing market continued to recover, although it remains to be seen whether buyers will stay active as the Fed policy outlook has changed in recent weeks.
EUR/USD
EUR/USD failed to settle above the 1.0850 level and pulled back. Today, traders had a chance to take a look at the GfK Consumer Confidence report from Germany. The report showed that Consumer Confidence improved from -30.6 to -29.5, compared to analyst consensus of -29.2.
The report missed analyst estimates and showed that German consumers remained under pressure. However, this data should not have a material impact on ECB decision making as the central bank remains focused on its fight against inflation.
GBP/USD
GBP/USD moved towards the 1.2320 level after an unsuccessful attempt to settle above 1.2350. Traders focused on the general dynamics of the U.S. dollar and took some profits off the table at multi-week highs.
USD/CAD
USD/JPY rallied towards the 132.50 level as traders focused on the recent rebound in Treasury yields. A successful test of the resistance at the 20 EMA at 132.75 will open the way to the test of the 50 EMA at 133.35.
For a look at all of today’s economic events, check out our economic calendar.
