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

Key Insights

• EUR/USD declined below the 1.0900 level after the release of inflation data from the EU. 
• GBP/USD pulled back after an unsuccessful test of the 1.2400 level. 
• USD/JPY tested the 50 EMA at 133.30 but lost momentum and pulled back below the 133 level. 

U.S. Dollar

U.S. dollar rebounds after the release of weaker-than-expected Michigan Consumer Sentiment report. It looks that traders decided to take some profits off the table after the recent pullback. In case the U.S. Dollar Index climbs back above the 102.50 level, it will head towards the resistance at 102.80.

EUR/USD

EUR/USD pulled back below the 1.0900 level as Euro Area inflation reports missed analyst expectations. Euro Area Inflation Rate declined from 8.5% in February to 6.9% in March, compared to analyst consensus of 7.1%.

On a month-over-month basis, Euro Area Inflation Rate grew by 0.9%, while analyst expected that prices would grow by 1.4%. Euro Area Core Inflation Rate increased from 5.6% to 5.7%, in line with the analyst expectations.

The weak Retail Sales report from Germany, which indicated that Retail Sales declined by 1.3% month-over-month in February, served as an additional bearish catalyst for the euro.

GBP/USD

GBP/USD pulled back towards 1.2375 after an unsuccessful attempt to settle above the 1.2400 level. GBP/USD will likely face significant resistance in the 1.2400 – 1.2450 area, so some traders will take profits off the table after the strong rebound.

USD/CAD

USD/CAD settled near 1.3525 as the oil markets continued to move higher amid supply worries. Other commodity-related currencies have been swinging between gains and losses in today’s trading session. AUD/USD settled near the 0.6700 level, while NZD/USD pulled back towards 0.6265 after an unsuccessful attempt to climb above the 0.6300 level.

USD/JPY

USD/JPY tested resistance at the 50 EMA at 133.30 but lost momentum and pulled back below the 133 level. The pullback in Treasury yields served as a negative catalyst for USD/JPY.

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